Muthoot Finance, which recently forayed into the personal loan segment, has set a target to achieve Rs3,000-crore assets under management (AUM) in the segment by 2023. During the current financial year, the company is planning to disburse Rs300 crore of personal loans, Muthoot Finance executive director George M Alexander said. “We have set a target to disburse Rs300 crore of personal loans during the current financial year. In FY19, we aim to offer the personal loan product in more than 20 cities of south India. We aim to build a portfolio of assets under management of Rs3,000 crore over the next five years by 2023,” Alexander said.
The company’s personal loan products are currently available in Telangana and Andhra Pradesh. Muthoot plans to leverage its existing customer base through branches and direct sales team, thereby reaching out to more and more customers. The company will focus equally on salaried individuals employed with SMEs as well as bigger corporates. “We also have suitable products for those customers who do not have Cibil score,” he added. Any salaried individual with stable employment and a monthly salary of Rs20,000 or more in metro locations and Rs10,000 or more in other towns can apply for a personal loan with MFL. The rate of interest starts from 14% to 21% with an average loan size of Rs1-10 lakh.