Gold loan company Muthoot Finance, which is evaluating options for foraying into the insurance business, is currently on the lookout for a foreign partner in this regard. The company, which has a gold brokerage licence will rope in a foreign partner to launch the insurance business. Further, the company’s initial investment cap stands at Rs 300 crore.
The company is eyeing Rs 25,000 crore loan book and is targeting 9-10% margin by March 31, 2014. Company’s current loan book stands at Rs 22,000 crore and margin at 9.5% as of December 31, 2013.
Muthoot Finance is a non-deposit taking systemically important non-banking finance company (NBFC). It is primarily in the business of lending against used household gold jewellery to individuals.