Muthoot Finance on Tuesday (May 21, 2019) announced its entry into the personal loans segment in Delhi-NCR with the launch of their scheme under which salaried individuals would be able to avail loans from Rs 1 lakh-10 lakh at an interest rate ranging from 13.5 - 23 per cent.

Under the scheme, the working population in the age group of 24-58 years, and engaged in private, state and central government services, would be able to avail personal loans for tenure of one to five years.

“Customers will be evaluated based on the credit history, KYC checks and CIBIL score,” said Prashant Bakshi, Business Head of the personal loans division, Muthoot Finance.

He added that while the interest rate would range between 13.5 per cent and 23 per cent per annum depending on the borrower’s take-home salary and credit score, the average rate would be 15-16 per cent.

George Muthoot Alexander, Executive Director, Muthoot Finance, said the company had already tested the scheme with customers from 16 locations across southern India.

According to company officials, the personal loans scheme is already eight quarters old and has already been tested in Bengaluru, Hyderabad, Chennai and Kochi markets. However, the Tuesday’s launch marks its entry into the northern Indian market.

With this launch, people would be able to apply for personal loans across 282 branches the company has spread across Delhi and NCR regions.

“We have set a target of taking this scheme from 16 locations at present to 44 locations by end of this year while disbursing Rs750-Rs1,000 crore during the period,” he said, adding that the scheme would also be launched in the eastern and western parts of the country soon.

“This is a unique offer which will benefit the salaried class as the loan can be availed with minimum documentation without any collateral and will be disbursed within 48 hours,” he added.

Known primarily for its retail gold loan scheme, the Muthoot Group’s current assets under management stood at Rs 38,303 crore at end of March.