Muthoot Microfin targets ₹20,000 crore AUM by FY27: CEO Sadaf Sayeed

Muthoot Microfin plans to grow AUM from ₹12,253 cr to ₹20,000 cr by FY27, raising secured loan share to 35% through LAP, gold co-lending and individual lending products

Muthoot Microfin, part of the Muthoot Pappacha group, is eyeing to grow its assets under management (AUM) to ₹20,000 crore by 2026-27 (FY27), with 65 per cent from unsecured segment, and the rest from the recently launched secured products — micro loans against property, co-lending in gold loans, and individual lending. 

The AUM of the company in the first quarter of the current financial year (Q1FY26) stood at ₹12,253 crore, 94 per cent of which came from the unsecured segment, and the remaining 6 per cent from the secured segment.

In an interaction with  Business Standard, Muthoot Microfin   Chief Executive Officer (CEO) Sadaf Sayeed said, “We are looking at around ₹14,500 crore AUM (by the end of FY26), out of which around ₹1,500 crore would be secured portion and the rest would be the joint liability group portion that we are doing.”

 

 

The company plans to increase the share of the secured segment to 15 per cent and unsecured to 85 per cent by the end of FY26. The non-banking financial company-micro finance institution (NBFC-MFI) is set to enter the gold loan space through a co-lending arrangement with its parent company Muthoot Fincorp. The lender also began micro loans against property (LAP) and micro business loans a few months ago. 

Out of our 3.4 million clients the lender has, 1.23 million have requirements for business, personal, gold, and housing loans, which are currently being met by other lenders. “We want to cater to these customers.  We have a co-lending partnership with our parent company, where 60 per cent of the portfolio would be on our balance sheet, and 40 per cent on the balance sheet of the parent.  All of these products are focused on our existing customers who have exposure outside,” Sayeed said. Disbursements of the company in Q1FY26 dropped 17 per cent year-on-year (Y-o-Y) to ₹1,775.6 crore from ₹2,204.3 crore as a result of the guardrails imposed by Micro Finance Network (MFIN), a self-regulatory organisation (SRO), in April 2025. 

Sayeed said that AUM growth will start reflecting from Q2FY26 itself.  

Furthermore, the company has plans to raise about ₹10,000 crore during the year. It has already raised ₹1,500 crore so far, he added.