One of the major Finance Services business in India, Muthoot Capital Services Ltd., a part of the Thiruvananthapuram-based Muthoot Pappachan Group, has announced its introduction into the used four-wheeler lending and consumer durable finance sector.
A senior official at Muthoot Capital Services Ltd confirmed this announcement earlier in the week.
The company, which has already been performing a pilot on used four-wheeler lending business in Kerala has set its sight to roll out this service all over India in a phased manner.
According to Madhu Alexiouse, the chief operating officer of Muthoot Capital, “Our every single product are focused at the lowest income level consumers who are at the bottom of the pyramid”
Alexiouse also went on to say,“Two-wheeler loans have already been given to these consumers and the next aspirational products that would be presented are consumer durables and second-hand cars.”
He further added, “So, in a response to their(Consumers) needs and demands, we are entering into the used car and consumer durable finance sector.”
Muthoot Capital Ltd, the listed entity of the Group, has a mammoth ₹16000 crore of assets under management.
In his speech given at the sidelines of a group executive leadership team briefing, Alexiouse also said, “We will give more focus on used cars that fall in the price range of ₹3-8 lakh because we have learned that is the need of customers coming under that segment.
He further added, “Within the next 2-3 months, we will start lending for used cars across the entire nation(India), also if everything works out as planned then we would introduce consumer durables loan in the third quarter.”
Muthoot Capital Ltd., which is one of the major financiers of two-wheelers had issued loans to 3.25 lakh customers in the previous year. It has a loan book of ₹2,000 crore and has in total financed more than 12 lakh two-wheelers.