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MONEY TRANSFER
SM
SERVICE:
May 27, 2011, Kochi, India: International money transfer consumers across
Kerala - Indias foremost remittance driven economy will now be able to
receive their Western Union Money TransferSM transactions from Muthoot
Finance - a leading Kerala based financial institution.
Muthoot Finance will now offer Western Union Money Transfer
services from its countrywide network of 2800 locations linking them to
Western Unions network of more than 400,000 locations in over 200
countries and territories across the world.
Launching the service, Mr George Alexander Muthoot Managing
Director, Muthoot Finance Ltd said, Here, on this occasion, three of the
biggest players of the Indian Financial Services industry have come together
with the intention of providing a premium money transfer service to customers
across the country.
Muthoot Finance Ltd., through its extensive network of branches, aims
to capitalize the huge potential of the money transfer business in India.
With its expansive global network, Western Union is uniquely
positioned to deliver fast, reliable and convenient money transfer services to
consumers across remote geographical locations globally.
Through our agreement with Western Union we have facilitated a
number of classes of trade including retail and banks to offer Western Union
Money Transfers services to the remotest corners of India. The collaboration
with Muthoot Finance is one more step in this direction which would
positively impact people across the 2,800 branches offering the service,
History of GOLD loan
Gold is a brilliant yellow precious metal that is resistant to air and water
corrosion. It is a very soft and pure metal. Gold is the most malleable and
ductile metal found on earth. Thats why it is expensive and it is alloyed with
other metals, usually copper and silver to make it less expensive and harder, a
karat is the unit that measures the purity of gold jewellery or else it is
hallmarked with a three digit number that indicates the parts per thousand of
gold. Some countries hallmark gold with a three digit number that indicates
the parts per thousand of gold. The alloyed gold comes in many colours and
may not be bright yellow all the time. It has long been a values commodity,
particularly in India where it is considered auspicious, and had been in use for
centuries in the form of jewellery, coins, bullions, electronics, and dentistry,
also for other medical purposes. Though gold is a highly liquid asset, it wasnt
until recently that consumers leveraged it effectively to meet their liquidity
needs.
Lenders provide loans by securing gold assets as collateral. Compared with the
rest of the world in India the gold loan market is big business. Until a decade
back, most of the lending was in the unorganized sector through pawnbrokers
and money lenders. However this scenario changed with the entrance of
organized sector players such as banks and non banking finance companies
(NBFCs) which now command more than 25% of the market. The organized
gold loan market has grown at 40% CAGR form 2002 to 2010. NBFCs have
been a major driving force behind this growth given their extensive network.
Faster turnaround time, higher loan to value ratios and the ability to serve non-
bankable customers. Of late, banks have improved their gold loan product
features and services. Coupled with comparatively lower interest rates
charges, bank stand to gain market share at the expanses of NBFCs in the near
future.
The eligibility criteria required to apply for gold lone in India includes three
factors. Firs-tly, the person has to be above 18 years of age. Secondly, the
person applying or a gold loan in India should have a ID & address proof and
last but not the least the applicant should be working on a regular salary basis ,
means there should be a constant flow of income.
BACKGROUND: GOLD AND THE INDIAN SOCIETY
Gold has traditionally been among the most liquid asset and is an accepted
universal currency. it has traditionally been consumed by individuals in the
form of jewellery, especially in India were it is considered auspicious. Gold is
presumed to be a safe haven in times of economic uncertainty, a fact
exemplified by a 30% increases the value of gold over the past year India is
one of the largest market of gold accounting for approximately 10% of the
total world gold stock as of 2010. Rural India accounts for 65% of this gold
stock. Though gold price have increased 19% CAGR from 2002 to 2010, gold
stock in India has grown at 22% CAGR During the same period to 18000 tons
(Rs.32000 billion). The demand for gold has followed a regional trend with
southern India accounting for 40% of annual demand, followed by the west
(25%), north (20-25%) and east (10-15%).
Looking for Gold Loan Market
The Key Players in the Indian gold loan market include the unorganized
sector, banks _ public/private/cooperatives and NBFCs. While the
unorganised sector, comprising local pawnbroker and money leader has
traditionally dominated the gold loan market for money decades and still
commands nearly 75% of the market the organized sector led by NBFCs is
catching up fast. The organized sector has grown at rapid paces of 40% CAGR
form the 2002 to 2010 and is expected to grow by 33% to41% CAGR in 2011
And in doing so these companies are challenges the dominance of the large
unorganized sector within the organized sector, NBFCs have grown at a repaid
rate from 18.4% in FY to 32.2% in FY10. (Source: cognizant 20-20 insight
jan.2012)
Muthoot finance
With a tagline loan in just 5 minutes muthoot fiancs is a Indias largest gold
loan company & is the fast choice of Indian who want to make their dream a
reality. May the dream be to start their own business or to buy their own
home: muthoot finance has helped almost every Indians dream come true,
trusted by over 76000 customer every day muthoot finance gold loan has
services and products that fit the need of any customers, making it the quickest
,most convenient and safest way to take gold loan
Headquartered in the southern Indian state of Kerala, their operating history
has evolved over a period of 72 since M George muthoot (the father of our
promoter) founder a gold loan business in 1939 under the heritage of a
treading business established by his father, ninan mathai muthoot in 1987.
since our formation, we have broadened the scale and geographic scope of
their retail leading operation so that, as of march 31, 2008, 2009, 2010, 2011
and in the period ended September 30, 2011 revenue from their gold loan
business constituted 95.97% 96.71% 98.08% 98.75% and 99.01% respectively
, of their total income,