MMFL currently has four active lakh clients, mainly from rural and semi-urban areas.

Another NBFC in the Muthoot family is planning big, with the gold lending industry doing well because of the pandemic. Kerala-based Muthoottu Mini Financiers (MMFL) plans to open 100 branches across the country and targets 75% growth in assets under management (AUM) in the current fiscal year, said Mathew Muthoottu, Managing Director by MMFL.

MMFL had closed nearly 100 branches in 2019 and was in the consolidation phase after falling far behind Muthoot Finance and Muthoot Fincorp in book value and AUM.

“Gold lending business looks very good right now due to the uncertainty as people need money and banks are unwilling to lend. After the first lockdown, people wanted money to restart their businesses, small stores and businesses, etc. Going forward, we believe gold lending has a critical role in meeting immediate capital needs before the banks arrive, ”said Mathew Muthoottu.

The NBFC Gold Lending has grown 40-50% in the last fiscal year despite 2-3 months of complete lock-up.

MMFL currently has four active lakh clients, mainly from rural and semi-urban areas.

“Before 2020, we were in a phase of consolidation and closing of loss-making branches. Now we plan to increase our branch network to 900 from 806 in this AUM tax and gold loan of Rs 3,500 crore from the current level of Rs 2,000 crore, ”he added.

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