Muthoot Fincorp to offer gold loans at lower rate to women

Written by PTI | Mumbai | Updated: Mar 8 2014, 00:39am hrs
Muthoot FincorpMuthoot Fincorp said it will be offering a two percentage point discount to women borrowers. Reuters
Gold lender Muthoot Fincorp today said it will be offering a two percentage point discount to women borrowers for loans under Rs 50,000 for a limited period in view of International Womens' Day tomorrow.

Women will be able to borrow at 12 per cent for loans up to a tenor of 1 year under Rs 50,000, it said in a statement.

A company spokesperson added that it otherwise charges a rate of 14 per cent for loans under Rs 50,000, which can go up to 22 per cent for loans above Rs 3 lakh.

The current scheme is available only till March 15 across the company's 3,829 branches, the statement said.

Women will get a loan to value ratio of up to 71 per cent, the company added.

Under the gold loan scheme, a borrower keeps gold as a security for raising money from a financier. The gold is given back to the customer after repayment or sold if the borrower faulters on repayment.