Gold volatility no major impact to gold loan biz: Muthoot

The volatility in gold prices will not have any major impact on the growth of gold loan business, a senior official of the country's leading gold loan provider said here today.

"We do not foresee any major impact in the gold loan market. There may be a slight decline in demand which will not impact our growth," Muthoot Finance COO KR Bijimon said here today.

He was speaking to reporters at the roadshow of Rs 600 crore NCD issue that opens on December 22, till January 7.

"We are looking at growth of credit disbursal by 60-65% during the year compared to last year," Bijimon said.

After reaching record levels over the past few months, gold prices has seen volatile movements recently. However, record depreciation of the rupee against the US dollar, which made imports costly, had helped check slipping price of the yellow metal to an extent.

Muthoot offers 13-13.4% annual interest on the NCDs, close to one% higher than previous public offer.

It has four options ranging from one year to five-and- a-half-year deposit scheme. The credit rating agencies had offered AA- (stable) rating to the issue.