Money & Banking

Muthoot Capital rides high on ‘ladies only’ loan scheme

V Sajeev Kumar NS Vageesh Kochi | Updated on January 23, 2018

ladies-only-scheme

Low-interest scooter loans, have helped the firm almost double its women customers



Targeting  women customers can pay off handsomely at times. A recent example is the ‘Ladies Only’ two-wheeler loans scheme that was launched by Muthoot Capital about nine months ago. 

Aimed at women, this scheme offers loans at 7.19 per cent interest if the vehicle is registered in the woman’s name —.comparatively, men will have to pay around 10 per cent.

That incentive has worked. The women customer base of Muthoot Capital, which was at 13 per cent last year, has now grown to 22 per cent. 

“With this growth rate, we hope that the women customer portfolio would be at least 35 per cent by March 2016,” said Thomas George Muthoot, Managing Director, Muthoot Capital, part of the Muthoot Pappachan Group.

“The overwhelming response to the scheme motivated us to scale up its reach to more States, and the company has registeried a total 23,500 disbursements valued at ₹110 crore since its launch in October last year,” he told BusinessLine during an interaction.

The company, he said, plans a total of 75,000 disbursements under the ‘Ladies Only’ scheme. The scheme, which has been appreciated by women, has been launched in all the eight States where Muthoot Capital is doing business. While most of the disbursements have taken place in Kerala (70 per cent), the plan is to increase the reach and penetration in the other States as well, he said.

The group plans to popularise the scheme through a 360 degree campaign comprising TV, print, radio, outdoor cinema and online media. Massive on-ground engagement activities, such as product display, and scheme popularisation are planned in women’s colleges/hostels and in government/private offices where women work.

Thomas Muthoot said that the company has also shifted gears to tackle the changes in the two-wheeler industry in line with the changing market scenario. Quoting statistics from the Society of Indian Automobile Manufacturers, he said scooters were gaining ground in the two-wheeler industry, moving up from 23 per cent to 30 per cent of the market. The industry predicts the figure would touch 45 per cent by 2017.

“Convenience of automatic transmission, unisex appeal, increasing demand for mobility from women and increasing number of women in the workforce are the major factors for launching the Ladies Only scheme,” he added.

Published on August 10, 2015

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