Muthoot Finance to inject ₹200 crore into home loan arm for growth

Muthoot Finance plans to invest Rs 200 crore in its housing finance subsidiary, Muthoot Homefin, for growth, as the home loan arm's assets under management rise 41% in Q1 FY26

Gold loan firm Muthoot Finance plans to infuse ₹200 crore in its housing finance subsidiary, Muthoot Homefin, said George Alexander Muthoot, MD and CEO, Muthoot Finance in a telephonic interaction with Business Standard. Currently, asset under management (AUM) of the home loan arm is at ₹3,096 crores in Q1FY26 against ₹2,199 crores in Q1FY25, registering a growth of 41 per cent.

 

 

“Belstar — the micro finance arm —  will be diversified as the RBI reduced the qualifying assets criteria for microfinance institutions to 60 per cent,” he added. Belstar has also added 10 gold loan branches, in order to diversify its loan book.

 

Even though the collections and recoveries in the microfinance sector has returned to normal levels, to contain stress in the sector, a risk-based scoring model as a new control measure to improve the quality of lending had been introduced.

 

“Earlier, [micro] loans were given left, right, and centre. Now it is more responsible and focus is more on giving loans to new customers,” he added.