Muthoot Finance is an Indian NBFC that specializes in gold loans. It has over 3,000 branches across India. Some key services include: - Gold loans with disbursal in 5 minutes and loans from ₹1,500 to ₹1 Crore - Money transfer services allowing real-time money transfers within 10 minutes - Foreign exchange services like buying/selling traveller's cheques and currency exchange - Other financial services like insurance, share trading, and gold coins Muthoot Finance focuses primarily on gold loans, which constituted 98.5% of its revenues. It has had significant success in South India, where over 70% of its branches are located and gold

1. SUBJECT TEACHER : -SUBJECT TEACHER : -
MRS. SURBHI BHOJANIAMRS. SURBHI BHOJANIA

2. TOPICTOPIC
NO.NO.
NAMENAME RollRoll
No.No.
VIKAS BANGERAVIKAS BANGERA
ASHWINI JAGTAPASHWINI JAGTAP
NISHAD VIJAYKUMARNISHAD VIJAYKUMAR
VRUJESH SHARMAVRUJESH SHARMA
SALVIUS SUKUMARANSALVIUS SUKUMARAN
ROHIT SINGHROHIT SINGH
1.1.
2.2.
3.3.
4.4.
5.5.
6.6.
0303
1313
2323
3333
4343
5353

5. CompanyCompany
Market CapMarket Cap
(Rs. in Cr.)(Rs. in Cr.)
P/EP/E
(TTM)(TTM)
(x)(x)
P/BVP/BV
(TTM(TTM
(x)(x)
EV/EBIDTEV/EBIDT
AA
(x)(x)
ROEROE
(%)(%)
ROCEROCE
(%)(%)
D/ED/E
(x)(x)
I D F CI D F C 20,013.6620,013.66 13.3013.30 1.651.65 8.738.73 13.913.9 14.114.1 2.442.44
Bajaj FinservBajaj Finserv 13,030.6013,030.60 175.22175.22 9.029.02 80.9380.93 5.45.4 7.67.6 0.000.00
Muthoot FinanceMuthoot Finance 11,560.8611,560.86 15.2315.23 1.691.69 4.724.72 41.941.9 54.654.6 2.092.09
Vatsa CorpnVatsa Corpn 10,250.9810,250.98 0.000.00 1.351.35 0.000.00 0.00.0 0.00.0 0.000.00
Reliance CapitalReliance Capital 8,374.758,374.75 16.1316.13 0.760.76 7.397.39 5.75.7 13.513.5 1.191.19
M & M FinancialM & M Financial 8,131.248,131.24 11.9811.98 2.752.75 7.237.23 22.822.8 18.518.5 2.902.90
L&TL&T
Fin.HoldingsFin.Holdings
7,664.987,664.98 89.4089.40 2.292.29 80.1080.10 2.82.8 4.04.0 0.000.00
Indiabulls Fin.Indiabulls Fin. 6,497.926,497.92 8.838.83 1.521.52 4.994.99 17.217.2 16.616.6 2.452.45
India SecuritiesIndia Securities 4,926.384,926.38 0.000.00 57.4057.40 0.000.00 0.00.0 0.00.0 1.781.78
Bajaj Fin.Bajaj Fin. 4,584.564,584.56 10.0910.09 2.252.25 7.087.08 24.024.0 21.421.4 2.732.73

8. Founder of MuthootFounder of Muthoot
finance Ltd.finance Ltd.
Late Mr. M. GeorgeLate Mr. M. George
MuthootMuthoot

11. ABOUT GOLD LOANABOUT GOLD LOAN
 Key features of Gold Loan:Key features of Gold Loan:
 Loan disbursal in 5 minutesLoan disbursal in 5 minutes
 Loans starts from 1,500 to 1 CroreLoans starts from 1,500 to 1 Crore
 Minimal documentation and creditMinimal documentation and credit
assessment requirementsassessment requirements
 Evaluation of gold ornaments takesEvaluation of gold ornaments takes
place in house.place in house.
 Safety of Gold Ornaments: All branchesSafety of Gold Ornaments: All branches
as equipped with Strong Rooms foras equipped with Strong Rooms for
keeping safe custody of Goldkeeping safe custody of Gold
OrnamentsOrnaments
 Gold Loan available at over 3,000Gold Loan available at over 3,000
Muthoot Finance branches across IndiaMuthoot Finance branches across India
 0% processing fees0% processing fees

12. ABOUT MONEYABOUT MONEY
TRANSFERTRANSFER
 Muthoot Money Transfer allows realMuthoot Money Transfer allows real
time money transfers from across thetime money transfers from across the
seas, with the money reaching theseas, with the money reaching the
receiver in less than 10 minutes. receiver in less than 10 minutes.
 The key highlights of this service are:The key highlights of this service are:
 Fastest Money Transfer facilityFastest Money Transfer facility
 No bank account needed for amountsNo bank account needed for amounts
up to Rs. 50,000up to Rs. 50,000
 The receiver does not have to pay anyThe receiver does not have to pay any
service chargeservice charge
 Certified by the RBICertified by the RBI

13. ABOUT FOREIGNABOUT FOREIGN
EXCHANGEEXCHANGE
 Muthoot foreign exchange service.Muthoot foreign exchange service.
with the wide network of almost 3000with the wide network of almost 3000
branchesbranches
 A few features of their ForeignA few features of their Foreign
Exchange service:Exchange service:
 Buying and selling of all majorBuying and selling of all major
Traveller’s cheques and Travel CardsTraveller’s cheques and Travel Cards
 Commission free encashment ofCommission free encashment of
Traveller’s chequesTraveller’s cheques
 Competitive rates for all currenciesCompetitive rates for all currencies
 Remittance of funds abroad forRemittance of funds abroad for
various purposesvarious purposes

14.  Access it anywhere in IndiaAccess it anywhere in India
 Earn Loyalty Points on every transactionEarn Loyalty Points on every transaction
at ANY Muthoot branchat ANY Muthoot branch
 Redeem these Loyalty Points forRedeem these Loyalty Points for
attractive giftsattractive gifts
 Get Rs. 20 per gram extra on Gold LoanGet Rs. 20 per gram extra on Gold Loan
 Keep all your jewelry in our lockers freeKeep all your jewelry in our lockers free
of cost (No locker charges!)of cost (No locker charges!)
 Rs. 50,000 Personal Accident InsuranceRs. 50,000 Personal Accident Insurance
coveragecoverage
 Special overdraft scheme for MPowerSpecial overdraft scheme for MPower
CardholderCardholder
ABOUT M-ABOUT M-
POWER CARDPOWER CARD

15. ABOUTABOUT
TRAVELSMARTTRAVELSMART
Within just a few months of its launch MuthootWithin just a few months of its launch Muthoot
Travelsmart has already become one of the leadingTravelsmart has already become one of the leading
IATA (International Air Transport Association)IATA (International Air Transport Association)
The services offered under
Travelsmart include:
International & DomesticInternational & Domestic
TicketingTicketing
Railway TicketingRailway Ticketing
ToursTours
Passport, Emigration & VisaPassport, Emigration & Visa
Travel InsuranceTravel Insurance

16.  Such as :Such as :
 PAN CARD SERVICEPAN CARD SERVICE  INSURANCEINSURANCE

17.  SHARESHARE
TRADINGTRADING
 GOLD COINSGOLD COINS

18. FROM ALL THEFROM ALL THE
ABOVE SERVICESABOVE SERVICES
MUTHOOT FINANCEMUTHOOT FINANCE
MAINLY FOCUS ONMAINLY FOCUS ON
PROVIDINGPROVIDING
GOLDGOLD
LOANSLOANS

20. GEOGRAPHICAL DISTRIBUTION OFGEOGRAPHICAL DISTRIBUTION OF
MUTHOOT FINANCE IN TERMS OF GOLDMUTHOOT FINANCE IN TERMS OF GOLD
LOAN IN INDIALOAN IN INDIA
GEOGRAPHICAL DISTRIBUTION OFGEOGRAPHICAL DISTRIBUTION OF
MUTHOOT FINANCE IN TERMS OF GOLDMUTHOOT FINANCE IN TERMS OF GOLD
LOAN IN INDIALOAN IN INDIA

21. REASON FOR MOREREASON FOR MORE
SUCCESS IN SOUTHSUCCESS IN SOUTH
REGIONSREGIONS
 Very first reason is that the founder of muthootVery first reason is that the founder of muthoot
finance ltd. is from south india region.finance ltd. is from south india region.
 The southern region of India accounts for 85-90%The southern region of India accounts for 85-90%
of the Gold Loansof the Gold Loans market in India.market in India.
 Major reason for success is that ‘ theMajor reason for success is that ‘ the 70% of its70% of its
branch network positioned in Southern regionbranch network positioned in Southern region
itself.itself.

22. ADVANTAGES OF GOLDADVANTAGES OF GOLD
LOANSLOANS
No income and salaryNo income and salary
requirementsrequirements
Even if you have a bad creditEven if you have a bad credit
history and low income levelhistory and low income level
Low interest ratesLow interest rates
Pay only the interestPay only the interest
ConvenienceConvenience
Emotional attachmentEmotional attachment
Less processing timeLess processing time

23. Loan SchemeLoan Scheme Annual Interest RateAnnual Interest Rate
(on diminishing balance)(on diminishing balance)
Express 3 Minutes Gold Loan - Daily InterestExpress 3 Minutes Gold Loan - Daily Interest
SchemeScheme
(Available in Kerala only)(Available in Kerala only)
24%24%
Express 3 Minutes Gold Loan - Weekly interestExpress 3 Minutes Gold Loan - Weekly interest
remittanceremittance
(Outside Kerala)(Outside Kerala)
24 % / 27%24 % / 27%
( as per the applicable( as per the applicable
scheme )scheme )
Smart+ Gold Loan (EMI Scheme)Smart+ Gold Loan (EMI Scheme) 24%24%
Traders Flexi Gold LoanTraders Flexi Gold Loan 24%24%
Interest Rate structure*Interest Rate structure*

24. SWOT ANALYSIS OF MUTHOOTSWOT ANALYSIS OF MUTHOOT
FINANCEFINANCE
STRENGTHSSTRENGTHS WEAKNESSESWEAKNESSES
OPPORTUNITIESOPPORTUNITIES THREATSTHREATS
 Market leading position in theMarket leading position in the
Gold Loan business with a strongGold Loan business with a strong
presence in under-served ruralpresence in under-served rural
and semi-urban marketsand semi-urban markets
 Strong capital raising abilityStrong capital raising ability
 Geographic diversification will aidGeographic diversification will aid
in business scalabilityin business scalability
 Gold loan business constitutedGold loan business constituted
98.5% of revenues. So any major98.5% of revenues. So any major
decline in gold prices in futuredecline in gold prices in future
can adversely impact thecan adversely impact the
company’s revenue.company’s revenue. RBI removed the 'priority sectorRBI removed the 'priority sector
lending' status to gold loans forlending' status to gold loans for
the agriculture purpose.the agriculture purpose.
 The gold loans market isThe gold loans market is
significantly under-penetratedsignificantly under-penetrated
and is expected to continueand is expected to continue
growing at the rate of 35-40% ingrowing at the rate of 35-40% in
the future.the future. Changing customer attitude andChanging customer attitude and
life stylelife style
 Rising interest rate scenarioRising interest rate scenario
 There are about 7,000 litigationThere are about 7,000 litigation
cases against the company.cases against the company.
 Increased competition from otherIncreased competition from other
NBFCs and banks in goldNBFCs and banks in gold
financing businessfinancing business

25. GOLD LOAN RELATEDGOLD LOAN RELATED
QUESTIONSQUESTIONS WITHWITH
ANSWERSANSWERS
I.I. What documents do I need to produce?What documents do I need to produce?
Original proof of identification. Any of the following areOriginal proof of identification. Any of the following are
acceptable:acceptable:
•
PassportPassport
•
Govt of India election ID card with address proofGovt of India election ID card with address proof
•
PAN card with address proofPAN card with address proof
•
Driver's licenceDriver's licence
•
Any Govt departmental ID cardAny Govt departmental ID card
•
We are bound by and follow KYC norms as per theWe are bound by and follow KYC norms as per the
regulator's guidelines.regulator's guidelines.II.II. How is the loan amount calculated?How is the loan amount calculated?
•The loan amount is calculated based on the weight of gold.The loan amount is calculated based on the weight of gold.
The upper ceilings are prescribed by the RBI.The upper ceilings are prescribed by the RBI.
III. Will the loan amount be given to me in cash immediately?III. Will the loan amount be given to me in cash immediately?
•Yes, the loan amount will be paid in cash across the counter.Yes, the loan amount will be paid in cash across the counter.

26. IV. What is the percentage of interest charged and are there anyIV. What is the percentage of interest charged and are there any
service charges that I have to pay?service charges that I have to pay?
The current rate is 24% per annum on diminishing balance. Non-The current rate is 24% per annum on diminishing balance. Non-
servicing of interest at agreed intervals will attract additionalservicing of interest at agreed intervals will attract additional
default interest.default interest.
 Service charges are:-Service charges are:-
 Upto Rs 5000/-Upto Rs 5000/- Rs 5/-Rs 5/-
 Rs 5001/ to Rs 10000/-Rs 5001/ to Rs 10000/- Rs 10/-Rs 10/-
 Rs 10001/- to Rs 20000/-Rs 10001/- to Rs 20000/- Rs 20/-Rs 20/-
 Rs 20001/- to Rs 50000/-Rs 20001/- to Rs 50000/- Rs 40/-Rs 40/-
 Above Rs 50000/-Above Rs 50000/- Rs 75/-Rs 75/-
V. Is it a flat rate of interest that I have to pay?V. Is it a flat rate of interest that I have to pay?
The interest is charged on the outstanding balance of the loan.The interest is charged on the outstanding balance of the loan.
VI. Do I get an account number?VI. Do I get an account number?
Yes, we will be giving a loyalty number which you can produceYes, we will be giving a loyalty number which you can produce
each time you avail a loan. Thereby you are exempted fromeach time you avail a loan. Thereby you are exempted from
paying the service charge from the second transaction on.paying the service charge from the second transaction on.

27. VII. What is the amount received if I pledge 1 gram of gold?VII. What is the amount received if I pledge 1 gram of gold?
•The minimum weight accepted for pledging is 2 grams andThe minimum weight accepted for pledging is 2 grams and
the minimum loan amount is Rs 500/-the minimum loan amount is Rs 500/-
VIII. I am a regular gold loan customer of Muthoot FinanceVIII. I am a regular gold loan customer of Muthoot Finance
Ltd. Can I shift to Smart + gold loan scheme?Ltd. Can I shift to Smart + gold loan scheme?
•Existing customers under regular gold loan scheme canExisting customers under regular gold loan scheme can
shift to Smart gold loan scheme by transferring the balanceshift to Smart gold loan scheme by transferring the balance
payable to Smart + gold loan scheme.payable to Smart + gold loan scheme.
IX. How is the repayment of loan done? Is there an EMIIX. How is the repayment of loan done? Is there an EMI
calculated?calculated?
•There is no fixed EMI and therefore you can remit anyThere is no fixed EMI and therefore you can remit any
amount at any time to reduce your interest burden.amount at any time to reduce your interest burden.
X. Will I be informed if my loan becomes overdue?X. Will I be informed if my loan becomes overdue?
•Yes, you will be informed of the same by notice on theYes, you will be informed of the same by notice on the
address given.address given.

28.  CRISIL has assigned a CRISIL IPOCRISIL has assigned a CRISIL IPO
grade ofgrade of ‘4/5’‘4/5’ (pronounced "four on(pronounced "four on
five") to the proposed IPO offive") to the proposed IPO of
Muthoot Finance Ltd (MuthootMuthoot Finance Ltd (Muthoot
Finance).Finance).

29. SURVSURVEYEY PICPICTURESTURES