Muthoot Finance is a ``Systemically Important Non-deposit taking NBFC`` headquartered in the southern Indian state of Kerala. It is the largest gold financing company in India in terms of loan portfolio that provides personal and business loans secured by gold jewellery, or Gold Loans, primarily to individuals who possess gold jewellery but are unable to access formal credit within a reasonable time.The company also provides money transfer services through its branches as sub-agents of various registered money transfer agencies, and has recently commenced providing collection agency services. The revenues from Gold Loan business constituted 98% of its total income. Its customers are typically small businessmen, vendors, traders, farmers and salaried individuals, who for reasons of convenience, accessibility or necessity, avail of our credit facilities by pledging their gold jewellery rather than taking loans from banks and other financial institutions. The company serves through 2,263 branches across 20 states, the national capital territory of Delhi and four union territories in India. It has since increased its branch network to 2,611 branches as of February 28, 2011. It also disburses other loans, including those secured by Muthoot Gold Bonds. The tenure period of its Gold Loans is 12 month maximum. The company offers products with varying loan amounts, advance rates (per gram of gold) and interest rates. The principal loan amounts disbursed usually range from `2000 to 100000 while interest rates on Gold Loans range between 12.00% to 30.00% per annum. In the year ended March 31, 2010, its retail loan portfolio earned, on average, 1.67% per month, or 19.94% per annum. Approximately 65.5 tons, of gold jewellery was held as security for Gold Loans. The gross non-performing assets (NPAs) were at 0.46% and 0.35% of its gross retail loan portfolio under management as of March 31, 2010 and November 30,2010 respectively.
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