On the occasion of Financial Inclusion Day, Muthoot Finance Ltd., the flagship company of The Muthoot Group and India’s largest gold loan company won the coveted Skoch Financial Inclusion Award 2013. The award was presented by Dr C Rangarajan, Hon’ble Chairman, Economic Advisory Council to the Prime Minister at Hotel Shangri-La, Ashoka Road, New Delhi. The award was conferred in recognition of its major initiative in the area of ‘Access to Banking and Financial Services’ to the aam aadmi who had been excluded from the country’s banking network for decades.
On receiving the accolade, M. G. George Muthoot, Chairman, The Muthoot Group said: “This award is indeed special to me as it recognizes Muthoot Finance’s role and mission of building a sustainable economic model of financial inclusion in the rural and semi-rural heartland of the country.”
Since its inception in 1939, Muthoot Finance has brought thousands of rural and semi-urban Indians into the banking net for the very first time by venturing into the last mile of the remotest rural areas of India. It is one of the first Indian companies to consider thousands of rural Indians as perfectly bankable even before the term ‘financial inclusion’ was coined.
A pioneer in the Non-Banking Financial Company (NBFC) sector, it has been successful in making the unorganized sector into an organized sector and thus, saving the rural masses from the clutches of local money lenders. With a customer base of over 6 million and serving around 80,000 customers every day who seek loan against gold ornaments, Muthoot Finance has changed the concept of gold loan from a ‘last resort’ or ‘desperate loan’ option to a ‘lifestyle banking product’.
It has made gold jewellery, which was considered to be a static asset and kept in the lockers of the houses few years back, an economically productive asset and an economy driver. The massive branch expansion has also led to a lot of employment opportunities in Tier II, III & IV cities. Infact, in the latest ET 500 & Fortune 500 survey dated December 2012, Muthoot Finance has been ranked 189 and 214 respectively, a considerable higher ranking from the last fiscal year ranking.
Skoch Financial Inclusion Awards recognises best practices and achievement in the banking and financial services sector for promoting inclusive growth and poverty alleviation from across urban and rural India. The award committee consisted of an eminent jury comprising industry leaders, domain experts, economists and academicians.