Muthoot Finance Business Model: How does Muthoot Finance Make Money?

The biggest nonbank financial company (NBFC) in India for gold loans is Muthoot Finance Ltd. The company sells gold coins, provides insurance plus money transfer services, and finances gold loans in addition to conventional lending options. The company’s main office is in Kerala’s Kochi.

The flagship business of the Muthoot Group, Muthoot Finance, was founded on March 14, 1997, as Muthoot Finance Pvt. Ltd., a private limited company. M.G. George Muthoot, George Thomas Muthoot, George Jacob Muthoot, and George Alexander Muthoot are the company’s promoters. In the fiscal year 2009–10, the firm added 620 new branches.

Muthoot Finance

Muthoot Finance Business Model

1. Value Proposition

Muthoot offers its clients the following special advantages or value through its goods and services.

A Wide Range of Offerings: Muthoot Finance provides a variety of goods and services under one roof to meet the needs of its clients. These include gold loans, insurance, gold coins, home loans, microfinance, foreign exchange, PAN card services, mutual funds, white label ATMs, demat, foreign inward money transfer, and travel services, among other things.

Gold Loan Advantages: When a customer takes out a gold loan from Muthoot Finance, they are eligible for several special privileges, including as the return of their gold in the same condition as when they were taken as security for the loan, a 24/7 online interest payment option, and the ability to top up their loan. The company does not impose any additional fees, and insurance for customers’ gold is also free.

Easy Gold Scheme for Buying Gold Coins: The gold coin buying service provided by Muthoot Finance stands out for several special reasons, including the ability to purchase gold coins in 999 purity or 24 carat, easier monthly installment options, less investment risk, and increased ROI (return on investment).
Money Transfer: Muthoot Finance provides various options for sending money, including domestic and international money transfers.
24/7 cash transfer capability: Any Indian bank account can have a 24/7 fund transfer capability thanks to the domestic money transfer capability.

Foreign Exchange Services: Muthoot Finance offers convenient currency conversion services at affordable prices. A wide range of travelers can benefit from the availability of all major currencies. Furthermore, sending money overseas has very little processing fees and takes very little time.
Insurance Services: The company provides two types of insurance: life insurance through Muthoot Lifeguard and general insurance through Muthoot Home Protector (MHP).

Personal Loan at Attractive Rates: Muthoot Finance provides straightforward personal lending options with minimal documentation for individual and family needs.
Go Digital and Cashless: Muthoot Finance offers a variety of loan disbursement methods, including online payments, instant cash facilities, pre-paid Visa cards, and E-KYC choices. It also offers digital customer services, such as the “iMuthoot” App for Webpay, quick pay, and other features.

2. Customer Segments

Customers of Muthoot Finance include:

  • Small businesses or enterprises
  • Salaried individuals
  • SME business owners
  • Landlords

3. Key Partners

Muthoot Finance has partnerships with online payment gateway service providers as well as well-known institutions including Global IME Bank, YES Bank, which is situated in Prabhu Bank, Nepal, and IndusInd Bank.

4. Key Resources

  • Muthoot Homefin (India) Limited (MHIL)
  • Asia Asset Finance PLC
  • Belstar Investment and Finance Private Limited (BIFPL)
  • Muthoot Insurance Brokers Private Limited (MIBPL)
  • Muthoot Money Limited (MML)
  • Mobile App
  • Information Technology
  • Application software
  • Manpower or staff

5. Key Activities

Promotional and advertising campaigns: Muthoot Finance runs a range of educational advertising campaigns in print and digital media, including radio, newspapers, TV stations, magazines, billboards, and more. In addition, car displays, etc.

App development: For B2E and B2C platforms of enterprise mobility as well as internal process automation, the team creates a variety of iOS and Android-compatible apps. Scholarships, health and education programs, environmental friendliness, planting trees, sports, philanthropy, and women’s empowerment are just a few of their CSR endeavours.

6. Channels

  • Website
  • Mobile App
  • Social media
  • Muthoot Online

7. Customer Relationship

The values and vision of Muthoot Finance are oriented toward giving its clients the best possible services and assistance. For this, they have centralized customer support centers and professional personnel at its branches.

8. Sources of Income

The sale of shares and securities, interest income, service fees, and other revenue-generating activities make up Muthoot Finance’s revenue sectors.


The biggest NBFC in the gold lending market is Muthoot Finance. It appeals to its clients’ financial demands. In addition to offering its clients special and one-of-a-kind services, Muthoot Finance understands the ideal business plan to establish itself as a competitive NBFC in India.

Sumit Kumar Yadav has experience analyzing business and finance of big to small companies. Loan, Insurance, Investment data analysis are his key areas.