Ahmedabad, April 15: With more number of banks foraying into gold-based financing, the credibility of the business has increased tremendously, Managing Director of India’s largest gold loan lender, Muthoot Finance Ltd’s (MFL), George A Muthoot, said here today.
Muthoot was here to announce launch of the MFL’s initial public offer (IPO) that opens April 18, and is expected to raise up to Rs 900 crore.
“Earlier, business of giving loan against gold was perceived as only meant for poor man who was desperately in need of cash,” Muthoot told reporters here.
“But now with more number of banks, especially, the new age banks, offering gold financing, the credibility of the business has increased tremendously,” he said.
Muthoot said that it has worked to MFL’s advantage which is the largest gold financing company in the country.
“Now gold loan business is no longer only for the poor in need of money.
-Agencies