MUTHOOTFIN

MANAPPURAM

A quick compare of

& 1. Muthoot Finance Ltd. 🏢 Headquartered in Kochi, Kerala • India’s largest gold loan NBFC • 90%+ business from gold loans • 5,000+ branches • High Loan-to-Value (LTV), low documentation • Some minor diversification, but still primarily gold loan focused 🌐 Website: ***** ________________________________________ 2. Manappuram Finance Ltd. 🏢 Based in Thrissur, Kerala • One of the oldest and leading gold loan NBFCs • Large part of their business still from gold loans • Fast approval, even via mobile • Also offering microfinance and home loans, but gold loan is core product 🌐 Website: ***** 🚨 Key Changes to Gold Loan Rules 1. 📈 Higher Loan-to-Value (LTV) Limits • Up to ₹2.5 lakh: LTV increased from 75% to 85%, including interest • ₹2.5 lakh–₹5 lakh: LTV set at 80% • Above ₹5 lakh: LTV remains 75% 2. 📝 Exemption from Credit Appraisal • No credit appraisal required for loans up to ₹2.5 lakh. This means fewer documents and faster disbursement, helping small borrowers access funds easier ________________________________________ 3. 🛡 Limited End-use Monitoring • End use tracking (how the funds are spent) is required only if the loan is classified under Priority Sector Lending (PSL) 4. 🛠️ Self-Declaration of Gold Ownership • Borrowers can now self-declare ownership of the pledged gold if they don’t possess formal receipts ________________________________________ 5. ⚙️ Standard Valuation & Other Rules • Lenders must value gold using the lower of the 30 day average or previous day’s price, as per IBJA or SEBI regulated exchange prices • Collateral must consist of jewellery, ornaments, or specific coins, NOT bullion or ETFs • Self-contained loan agreement required, detailing collateral, purity, lien conditions, auction/return procedures • Borrowed gold must be returned within seven working days upon full repayment