Muthoot Finance, one of India’s largest gold loan NBFC companies, has signed a Memorandum of Understanding (MoU) with Lulu International Exchange, one of the money exchange and transfer companies in the UAE, to work as its collection partner.
Muthoot Finance through this partnership aims to drive convenience and ease of money transfer for over four lakh NRIs in the UAE region whose relatives have availed gold loans back home.
India is so far the world’s largest recipient of remittances, with the share of remittances from the Gulf Cooperation Council (GCC) countries to Kerala, Tamil Nadu and Karnataka being high.
This partnership will largely benefit the customers and their relatives who have availed gold loans by providing them with a secure and reliable way to pay their gold loan installments at special rates.
The NRIs can avail the service at any of the 89 branches of Lulu Exchange spread across the UAE. The loan installment will be settled on a real time basis with a nominal fee charged for the remit service.
Through its physical branches and digital solution of LuLu Money, LuLu Exchange offers fast and reliable money transfer and foreign exchange service powered by a robust network, reputed partners and high standards of customer care.
With a wide network of 4,600 plus branches of Muthoot Finance in India, the beneficiaries can receive the money to their loan accounts in any of their branches. This is made possible in partnership with Muthoot Finserv, the USA venture of Muthoot Group, which has been one of the most reliable money transfer services providers to India and Sri Lanka.
Speaking on the partnership, George Alexander Muthoot, Managing Director, Muthoot Finance, said: “We are delighted to partner with Lulu Exchange to provide our customers with a seamless and secure way to repay gold loan installments. UAE holds a significant position amongst the countries worldwide in terms of the remittances received from Muthoot Finance’s overseas expatriate communities.”
“This partnership will enhance the cross-border repayment experience to be quicker and reliable. With the strategic business partnership, the NRIs can use Lulu Exchange branches to repay the gold loan installments of their relatives who have availed a gold loan from Muthoot Finance. We as a company are constantly upgrading our services to satisfy our customer’s changing needs and provide them with the best available solutions,” he added.
Speaking on the development, Richard Wason, CEO, LuLu Financial Group, said LuLu Exchange has been at the “forefront of delivering qualitative remittance products to Indian expats living in the UAE”.
“Our partnership with Muthoot Finance extends our responsibility to the NRI community by offering them a seamless and accessible medium to send money to their loan accounts. This will be of immense benefit to Muthoot’s customers in the UAE and we plan to digitise this service very soon, which will further simplify the payment needs of our customers,” he added.
Muthoot Finance recently expanded its doorstep service of gold loan at home across South India to make credit even more accessible and easy to avail.
The company saw its consolidated assets under management grow 11 per cent to Rs 64,494 crores and reported a profit of Rs 4,031 crores for the financial year 2022.