Muthoot Finance today said its customers can do their gold financing transactions through mobile phone app and web portal to keep the business going as cash has become a distant catch due to ban on Rs 500 and Rs 1000 notes.
Introducing various cashless ways, the company said customers can take and repay loans, as well as pay interest on existing loans through these new channels.
For disbursement of loans, Muthoot Finance is encouraging online gold loans, direct credit to customer’s bank account or by loading the loan amount on a pre-paid VISA card.
Web platform Webpay, mobile app iMuthoot along with existing RTGS/NEFT/IMPS facilities can be used by customer to repay their loans, it said.
However, customers can also repay their loans by depositing cheques and demand drafts.
Muthoot Finance said it is adopting technology to enable its customers pay their interest and principal dues online anywhere-anytime at their convenience without visiting the branch.
“The demonetisation initiative will immensely benefit the organised players in the sector. The unorganised players, however will be impacted as they don’t have these online transaction facilities,” said George Alexander Muthoot, Managing Director of the company.
The company has witnessed a 550 per cent jump in loan disbursements through digital channels after the recent ban on Rs 500/1,000 banknotes, he said.
“As our average ticket size of loans is Rs 40,000, almost 70 per cent of transactions were done through cash.
Today 60 per cent of the disbursements and repayments are taking through these digital channels,” he added