The online process also requires one time registration by visiting their branch.
Customer needs to register with them with his KYC and other details such as Bank account and mobile number.
After that the gold jewellery is appraised by them and the loan eligibility amount is calculated.
Once the customer is done with the process customer can use this as an OD account and interest is applicable only on the money drawn.
What about the locker/security fee for gold being held by the company? I’m assuming you are speaking from a personal experience
Digital goes a long way in improving customer experience. One doesn’t have to go through the hassle of visiting the branch and waste his productive hours waiting. On the other hand, it reduces the paper work for the company and simplifies the process whereby there is no employee involved in the entire transaction. Gold storage is securitized via digital locker (no security personnel) and the entire transaction happens without any human contact. This can go a long way in improving operational efficiency. The company can completely eliminate the concept of branches and employees. On the downside, such digital innovations can be tried only in urban areas where customers have access to personal loans from more aggressive banks. We have to wait and see how this works out in the rural areas though.
Disc: invested in Manappuram
No I am not their customer,I am tracking the company and sector from a long time.
They don’t charge you directly for the locker,it is provided free of charge while pledging your gold, but the interest will be charged at base rate of 14-15% + additional premium if you want higher loan to value + risk premium + processing fee,they keep tweaking this depending on their risk assessment.
Complete digital process is not possible as of now as appraisal of Gold can be done properly only at the branch.
On manapurram website they say they also give loans against property and loans to sme
Is that true for both, does anyone know firsthand please ?
Muthoot finance Price has doubled from the day message was written. Feel that it still has a long runway 
Factors helping this company
a) Distress times for business -people take more gold loans ( check the years after demonetisation , gold loans increased by 30% per annum ).Current period is more distressful than demonetisation
b) No NPAs , increasing gold prices make sure that old loan takers come back to pay the loan to take their gold back
c) Increased gold prices also encourage people to take higher amount of loan with the same quantity of gold
d) St0ck is getting split - whatever be the ratio- it would become available to more number of retail investors (especially the ones who relate high stock price to high valuation)
Feel we are in early days of bull market in Muthoot Finance
Disclaimer : Invested , it is number 2 in portfolio.
