One of the leading gold loan companies in the country, Muthoot Capital Services Limited (MCSL) is shifting its focus on vehicle loans. The company is interested in smaller value vehicle loans for two and three wheeler automobiles.
The company has projected a Rs. 690 crore in advances for the current fiscal against Rs. 300 crore in vehicle loans a year before. The decision comes in wake of falling gold loans, which dropped from Rs. 45 crore to Rs. 5 crore on yearly basis.
Company MD, Mr. Thomas George Muthoot, however maintained that Muthoot Fincorp will continue to focus on gold loans. The majority of business from the four year old vehicle loans comes from southern India, but the bank now has plans to take the product up north.
MSCL started its business in Maharashtra (excluding Mumbai) and Goa and has volume targets of Rs. 11 crore and Rs. 5 crore respectively. The NBFC also plans to add 1.55 lakh customers in the current fiscal to its existing customer base which is over 2 lakh.