as the financially excluded segments are customers of both Muthoot’s gold loans as well as housing finance. We also leverage Muthoot FinCorp’s wide branch network across India, when needed. But there are also stark differences, as gold loans are one of the shortest tenure loans, whereas housing loans are the longest tenure debt.
Thomas John Muthoot, Director, MHFCL
MPG also ha ations hass gr gro opera owing oper in the SME segmen ell a segmentt a ass w well ass micr ofinanc e. Ar e yyou ou eeyyeing any micro finance Are oup s yner gie om the se gr ynergie giess fr from these group div er sific ations ? diver ersific sifica tions? Again, there are synergies, as customers for both products belong to underserved categories, but there are also limitations as I mentioned just now. Gold loans and microfinance tend to be small or easy steps for a customer, but a housing loan is a much larger step, which is taken after much consideration.
“ ONE ADVANTAGE FOR FOCUSING ON THIS SEGMENT IS THAT BEING HUGE, FAST GROWING, AND UNDERSERVED, THERE IS IMMENSE SCOPE FOR GROWTH.
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C is Almost eevver eryy bank and NBF NBFC bullish on the home loan busine businesss, and tha ea sed thatt means incr increa eased compe tition and a lo ompetition lott o off a atttrition e bank s. Is ds lar ge pla towar playyer erss lik like banks. ards large dable attrition lo wer in the a low afffor ordable segmen t? segment? Yes, increased competition definitely implies that there would be a level of attrition involved. However, at Muthoot Housing Finance, we are less affected as many of our bigger competitors are not interested or equipped enough to serve customers in remote locations. As one among the many HF Cs HFC compe ting ffor or the same pool o ompeting off cust omer s, wha e Muthoo customer omers, whatt all ar are Muthoott Housing FFinanc inanc e’s U SP inance’s USP SPss? Our main USP is our distribution
power. We have something called doorstep delivery of home loans. The customer need not come to a Muthoot branch repeatedly. Our officers would visit their premises to deliver the loan. This is a huge advantage for them as each working day lost for such customers, by visiting a home loan branch, is quite valuable for them. Secondly, our turnaround time is very short, at around 7 days. ou ttell something ell us some thing about Can yyou gr ound, yyour our pr evious your back backgr ground, pre e assignmen t s, and y our per f ormanc signment your performance e? her e in Muthoo inanc here Muthoott Housing FFinanc inance I started my career with Tata, and later joined HSBC, where I worked for 13 years. I joined Muthoot Housing Finance in 2011 as CEO during its inception itself. We have rapidly