Gold loan demand back on working capital requirement: Muthoot Finance

NEW DELHI: The gold loan business of Muthoot Finance has returned to normal amid the pandemic backed by the need for working capital by small businesses and shops, George Alexander Muthoot, the Managing Director of Muthoot Finance.

Speaking to IANS, Muthoot said the company's operations were largely halted during the initial phase of the nationwide lockdown till April, but as restrictions were eased in May, demand for gold loan also increased.

"We have seen a lot of people availing gold loans now also. Our loans are mainly driven to small business people, shopkeepers for their working capital requirement," he said.

He added that as shops and establishments are opening up now and "they need money quickly, probably to buy stock, to pay their debtors or probably for any other business working capital".

He also said that the company's gold loan business is likely to witness a 15 per cent growth in the current financial year bucking the slowdown which other non-banking financial companies (NBFC) are facing.

He noted that due to the lockdown the business in April was impacted but the company was able to make it up in May and June. (IANS)

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