 "Muthoot welcomes hike in loan-to-value ratio")
Muthoot Finance Limited (MFL) has welcomed the RBI's announcement to increase loan-to-value (LTV) ratio to 75 per cent from the present 60 per cent.
In March 2012, the RBI had capped the LTV ratio and asked NBFCs to extend loans up to 60 per cent of the value of household gold jewellery.
MG George Muthoot, chairman, Muthoot Finance, said the move by the apex regulatory body would help the cause of financial inclusion and is an acknowledgment of the growing significance of gold-financing NBFCs in fuelling micro-economies in the country.
This would help the unbanked rural and semi-urban customers get more value against their assets and prevent them from going back to the unorganised sector.
In March 2012, the RBI had capped the LTV ratio and asked NBFCs to extend loans up to 60 per cent of the value of household gold jewellery.
MG George Muthoot, chairman, Muthoot Finance, said the move by the apex regulatory body would help the cause of financial inclusion and is an acknowledgment of the growing significance of gold-financing NBFCs in fuelling micro-economies in the country.
This would help the unbanked rural and semi-urban customers get more value against their assets and prevent them from going back to the unorganised sector.
You’ve reached your limit of free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%