Muthoot Finance (MF), the nation’s largest NBFC funding or in the form of portfolio, said today that there has been an increase in average interest rates on financing or 1.9 percent within six months.

“Our average interest rate on the financing of gold rose to 21.6 percent from 19.7 percent six months ago, an increase of 1.9 percent,” Muthoot Finance Managing Director George Alexander Muthoot told reporters here. 

The company offers various types of loan products, interest rates vary from a minimum of 12 percent to 24-25 percent.

“Return of the loans that we have about 19 percent over the past three years. But in the last six years, banks have increased their lending rates so our cost of debt has also increased, so have the prices increased by 21.6 per percent to 19.7 percent, “he said.

“But this is 21.6 per cent average is still the lowest offered by the NBFC funding for the gold,” he said.

“The company now has assets under management as the sum of Rs 19,000 crore, including the value of R 2090 crore of assets increased in the first quarter ended in June, this tax. We expect the same trend increase in the activities to continue in the coming quarters, “said Muthoot.

“On the liability of the company has bank loan of 7,200 million rupees R, in addition to R 2.399 million rupees through bilateral them, ENT Retail R 4400 crores through private placement of unsecured commercial paper R 1.171 billion rupees, “he said.

“The Muthoot gold assets increased steadily from 15 million tonnes to 210 Mt in 2005 from today in the vaults of our 3100 offices across India,” he said.