IPO-bound Muthoot Fincorp sees duties on gold driving up loan volumes

Mumbai: IPO-bound Muthoot Fincorp sees increased duty on gold adding to loan growth as higher prices post the hike expand borrowing headroom, even as the company has begun tracking end-use of loans from April in line with Reserve Bank of India norms and finds that a majority 70% are for productive purposes rather than consumption.Explaining the impact of rising gold prices, Shaji Varghese, CEO of Muthoot Fincorp, said, “Higher gold prices increase the loan value customers can avail, which can support AUM growth. It makes gold loans more attractive compared to other borrowing options.”The company has also operationalised new regulatory requirements on tracking loan usage from April 2026.

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