Archive · 19 Aug 2025
Muthoot Finance Expands Gold Loan Services After RBI Norms Easing
Muthoot Finance is expanding its gold loan services through its microfinance arm, Belstar.
This is because the Reserve Bank of India (RBI) relaxed some rules for financial institutions like Belstar.
Belstar is opening new branches for gold loans to facilitate this expansion.
Muthoot Finance recently reported a large increase in profits.
The company is also planning to borrow money from other countries to support its growth plans.
Belstar Microfinance, part of Muthoot Finance, is now offering gold loans.
Belstar is opening gold loan branches due to eased RBI norms.
RBI reduced MFIs' asset threshold, allowing diversification.
Muthoot Finance's Q1FY26 profit after tax grew 90% to ₹2,046 crore.
The NBFC plans to raise $750 million via external commercial borrowing.
- Who
- Belstar Microfinance and Muthoot Finance.
- What
- Belstar Microfinance, backed by Muthoot Finance, is starting gold loans following eased RBI regulations.
- When
- Q1FY26
- Where
- India
- Why
- Due to eased RBI regulations, the firm aims to diversify its asset base.
RBI
Muthoot Finance
Regulation
RBI
Reduced MFIs’ qualifying asset threshold
Muthoot Finance
N/A
- Belstar Microfinance Loan Book (June end)
- ₹7,706 crore
- Muthoot Finance Profit After Tax (Q1FY26)
- ₹2,046 crore
- Muthoot Finance Loan Book Growth (YoY)
- 42%
- Muthoot Finance ECB
- $750 million
Sources
Gold loan NPAs of NBFCs at 2.14 pc, banks at 0.22 pc
23% Of Total 56.04 Crore PM Jan Dhan Accounts Remain Inactive
‘Gold loan demand strong amid tighter unsecured credit norms,’ says George Alexander Muthoot
Rise in gold prices: Separate rates, rules for physical gold and gold ETFs coming? Govt says this
