Muthoot Finance is steadfast in its mission to drive inclusive growth, empower individuals, and support MSMEs
FinTech BizNews Service
Mumbai, 29 December, 2024: With the year coming to a close, Mr. George Alexander Muthoot, MD, Muthoot Finance, undertakes the review of 2024 and provides insightful outlook for 2025:
“The gold loan sector in India is experiencing an unprecedented growth, with a 41% year-on-year surge, reinforcing its vital role in the nation’s financial ecosystem. This remarkable expansion is fuelled by India’s deep-rooted cultural connection to gold, its rising value, and the increasing adoption of digital innovations. As lenders progressively pivot from unsecured lending to collateral-backed loans, the sector is poised for further acceleration in 2025.
Gold loans are uniquely positioned to cater to the financial needs of a diverse demographic, acting as a powerful tool for financial inclusion. Particularly for women, these loans offer seamless access to credit, even for those without a prior credit history. Notably, 66% of gold loan borrowers utilize these funds to support their micro or small businesses, further strengthening grassroots economic empowerment.
At Muthoot Finance, we are proud to be at the forefront of this transformation, achieving a historic milestone of ₹1 lakh crore in consolidated loan assets under management. In Q2 FY24, we recorded a net profit of ₹1,321 crore, marking a 21% year-on-year growth, and our total revenue from operations surged by 36.7% to ₹4,928.8 crore. These achievements underscore our unwavering commitment to creating value for our customers and driving the sector’s growth.
We take immense pride in adhering to the highest standards of regulatory compliance, as prescribed by the Reserve Bank of India (RBI). Our strong governance, transparent practices, and advanced systems consistently enable us to exceed customer expectations, fostering trust and confidence among our stakeholders.
Looking ahead, the gold loan market is projected to grow significantly, with an estimated market size of ₹15 lakh crore by 2027. At Muthoot Finance, we are steadfast in our mission to drive inclusive growth, empower individuals, and support MSMEs.”
