Muthoot Finance to raise upto Rs 1,000 crore

Muthoot Finance, the largest gold financing NBFC in India, has received an approval to raise funds aggregating upto Rs 1,000 crore by public issue of secured non convertible debentures (NCDs). The company has received an approval to raise funds at its board meeting held on July 25, 2011.

Recently, Muthoot Finance announced hassle free loans to the public against the security of Gold Exchange Traded Funds (ETFs). The new scheme that would be available to the customers by the end of July 2011 would enable them to avail finance against their Gold ETF units to the extent of 85% of the net asset value of ETFs.

Muthoot Finance plans to venture into a totally new segment of Gold Financing which would not only add value but also enable the company to service the financial requirements of newer customer segments. The Gold ETF Loan scheme by Muthoot Finance would act as a source for the investors of Gold ETFs to raise funds against their investment units during times of immediate requirement instead of selling those units.

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.