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Muthoot Finance’s [email protected] ticket size is 6x compared to branch loan, to reach 40 cities by FY21-end.

Expects a monthly disbursal of Rs. 250 cr via this mode in a couple of years’ time

Muthoot Finance had launched Loan[at]Home in June to address the health & safety aspect as well as to overcome mobility challenges of the customer during the pandemic. Through this service, the company executive visits the customer’s location, does the due diligence of gold ornaments on-the-spot and credits the gold loan amount to customer’s bank account via a secure, safe & speedy process without the customer having to step out of his/her home even once. The executive clocks less than 30 minutes at the customer’s location and procedure has been aligned to reduce loan processing time even further than before. To boost digital usage, Muthoot Finance has also been incentivizing customers with a cashback scheme that service interest payments online.

Since its launch, more than 1500 customers have availed [email protected] facility in the last 100 days. Interestingly, the average ticket size of [email protected] has been around Rs. 3.5 lakh, nearly 6x of the average ticket size from its branches. Customers have acknowledged convenience, privacy and safety as key factors for being comfortable in availing greater gold loans via this mode. As of August-end, around 85% of the customers had applied for [email protected] via call centre, while the remaining came from iMuthoot app and branches. Muthoot Finance expects the contribution of digital channels (iMuthoot app, website) to grow meaningfully going ahead, not just in acquiring new customers or giving fresh loans but also in repeat business, for instance loan top-ups later. About 80% of [email protected] business has come from existing customers thus far while the balance 20% has been from a new segment of customers coming into the fold through the company’s digital campaigns and initiatives.

The average age of a [email protected] customer has been ~35 years with an almost equal mix of male & female borrowers. Generally, the number of salaried customers availing gold loan from branches of Rs. 1 lakh or above, account for only a small slice but under [email protected] the uptake from salaried customers has seen a noteworthy jump. While the demand has been higher from metros, many Tier-2 cities like Vishakhapatnam, Ernakulam, Nellore, Kurnool among others have shown good interest and acceptance of this innovative service. From the metros – Bengaluru, Chennai and Hyderabad account for 20% of total disbursals; [email protected] was launched later in Delhi and traction has picked up last month. Working capital requirements of small businesses and education fees of children are observed to be the primary reasons for customers availing greater gold loans since the pandemic hit.

Currently, [email protected] facility is available in 25 cities and the aim is to cover 40 major and Tier-1 cities by fiscal-end. Given the phase-wise Unlockdown and restarting of economic activity in most places, Muthoot Finance is shortlisting the next set of towns to launch [email protected] in based on how soon the local businesses stabilise and return to normalcy there. [email protected] is going to be an important part of all future plans going forward as convenience, speed and safety become even more important for customers post-pandemic. And with the scale-up of [email protected] planned, Muthoot Finance expects a monthly disbursal of Rs. 250 cr via this mode in a couple of years’ time.

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