Muthoot Group Is Now Into Housing Loan

By Pradeep Yuvaraj | March 19, 2011

Recent press reports said that the Muthoot group, which is well known for its gold loan segment has planned to set up a new company, Muthoot Housing Finance which will provide home loan and complete subsidy of Muthoot Fin. Corp. The company has planned to issue loans ranging from three lakhs to 10 lakhs with the repayment tenor of 15 years.

The company has planned to pay out around 125-150 crore in 18 months time through this HFC. The company is mainly looking at customers whose monthly income would be between Rs 10,000-30,000.

Mr.Maneesh Srivastava, CEO, Muthoot Housing Finance told the press that initially the  promoters have decided to invest Rs 100 crore and later the funds would be raised from banks and multilateral financial organisations.

The interest rates charged will be 14-15% which is higher compared to 11-12% being charged by banks. This clearly shows that the borrowers of Muthoot Housing Finance would mostly be the ones who find it difficult to get loan from banks.

He added saying that the company is very confident that they would have many borrowers from their existing customer base. To begin with, Muthoot Housing Finance will open 25 branches in the suburban areas of Ahemdabad, Bangalore, Chennai and Mumbai.

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Pradeep Yuvaraj

About Pradeep Yuvaraj

Pradeep Yuvaraj is a Co-Founder and Director at Finerva Financial Solutions Private Limited, a financial education company focused on personal finance education. He has penned over 250 articles relating to Personal Finance and clocked over 500 hours of educating individuals on managing personal finance. He is a serial entrepreneur and has been associated with 7 Start-ups. His entrepreneurial experience spans industries as varied as Education, Gas Engineering, Automobile Design, Software development and more recently a Pure play presentation design company. Prior to turning entrepreneur in 2005, he has worked for 3 of the top ten companies of the world - Shell, ExxonMobil and Total SA. This experience included handling Branch Operations, Channel Sales and Business Development across 5 states over a period of 8 years. He holds an MBA from Symbiosis and an Electronics Engineering Degree from the University of Pune.

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