Manappuram Finance which is one of the leading Non-banking Financial providers of a gold loan in India is also the first one in Kerala to get registered by RBI. Incorporated in 1992, the company has 4622 branches, including the branches of subsidiary companies. These branches are spread across 28 states/UTs with assets under management (AUM) of Rs. 252.25 billion. The manappuram gold loan has turned out to be quite favorable.
During the fiscal year 2020, the company grew at 43% year-on-year and earned a profit of Rs 392.7 Crore for the quarter ending March. The profit for the previous quarter stood at Rs. 274.6 Crore. With the growth of the business, the shares of the company also surged at more than 7%.
VP Nandakumar, MD & CEO, of Manappuram Finance, says that the online gold loan disbursement during the lockdown period was 60%, with an outlay of the transaction to the extent of Rs 700-800 crore daily. The total disbursement of gold during the fiscal year was Rs. 1.7 trillion as against the disbursement of Rs 89,649 crore last year.
The company’s profit also grew because of rising gold prices. However, the management feels that the expectation of gold loan demand is below the expected mark. For the third and fourth quarter of this fiscal year, the company is expecting a growth of 7%-8% as per the current trends.
VP Nandakumar, who is a managing director & chief executive officer of the company says that “We ended the fiscal year 2019-20 on a strong note, recording good growth in business and profitability in the fourth quarter despite the setback towards the end related to the pandemic. Going forward, we feel we are well-positioned to tackle the economic fallout of the pandemic and maintain the momentum in this year too,”
Further, it is expected that there will be no NPA( Non-performing asset) for a gold loan market as there is a regular business of gold loan in the lockdown period as well. The reason for the same is because people have lost their job or are facing job cuts. Thus, they are resorting to borrowing methods to fulfil their financial needs. A gold loan seems to be one of the most viable options as it does not require any income proofs or credit score.
Talking about the company’s consolidated assets under management, it is told that there has been an upward growth by 29.8% due to demand for gold loans. The total AUM stands at Rs. 25,225 crores as against Rs.19,438 crore last year.
Here is everything you need to know about Mannapuam gold loans:
- Gold loan tenure: You can avail gold loan from Manappuram Finance for a tenure ranging between 1 day to 12 months.
- Gold loan amount: Borrowers can get a gold loan up to 75% of the value of the gold. It can range from Rs 1000 to Rs 1 Crore.
- The interest rate for a gold loan starts at 12.00%. The processing fee for a gold loan is Rs. 10, which is paid at the time of settlement. There are no charges on prepayment of a gold loan.
- You can repay a gold loan using the EMI scheme or bullet repayment methods. Under Bullet repayment methods, you can pay the principal amount at the end of the maturity period. The interest on the loan is, however, paid every month.
- Malappuram Finance also provides online gold loan facility. You can get a gold loan anytime and anywhere directly in your savings account with the bank.
Conclusion: Thus, with online gold loan facilities and the availability of gold loans at a lower interest rate, it is expected that the growth of gold loans will increase in the future.