Archive · 1 Sep 2025
Muthoot Finance Uses Gold Loans to Aid Struggling Units
Muthoot Finance, a big company that gives out loans, is using its gold loan business to help its other businesses that are not doing so well.
They're investing money into these struggling areas, like vehicle loans and home loans.
The company is also allowing a part of their other businesses to give out gold loans to bring in more profit.
The main reason for this is because gold loans are doing very well, especially since other types of loans are not doing well.
The company is trying to make sure that all of their different loan businesses can make money in the future.
Muthoot Finance is using gold loans to support its vehicle finance and microfinance subsidiaries.
₹700 crore has been injected into Muthoot Money and Muthoot Homefin to stabilize operations.
Belstar Microfinance is starting to offer gold loans to diversify its portfolio.
Gold loans make up the majority of Muthoot Finance's loan book.
Muthoot Finance reported a significant profit increase in Q1FY26.
- Who
- Muthoot Finance Ltd.
- What
- Is using its expertise in gold loans to stabilize struggling vehicle finance and microfinance units.
- When
- Recent regulatory changes
- Where
- Hyderabad and parts of Karnataka
- Why
- To improve profitability and diversify its loan portfolio.
- Subsidiaries receiving investment
- Muthoot Money and Muthoot Homefin
- Total Investment
- ₹700 crore
- Muthoot Finance Q1FY26 Net Profit
- ₹1,974 crore
- Gold loans in Loan Book
- ₹1.1 trillion of ₹1.3 trillion
- Stage 3 assets
- 2.58% as of June 30