Muthoot Finance MD George Alexander Muthoot says gold loan demand is steady despite shifting borrower sizes

Same loan value needs fewer grams of gold

Muthoot Finance’s gold loan business is holding up strongly, with growth still near 50% year-on-year as rising gold prices lift collateral values. The firm notes a structural slowdown in volumes: gold tonnage is down and active loan accounts have fallen for the second straight quarter. Management says the decline is driven by shorter loan tenures and churn, not weaker demand. Smaller-ticket loans are shrinking while larger loans gain. Tighter unsecured lending also funnels borrowers toward gold-backed credit.