Gold loan customers will get complementary COVID-19 Insurance: Muthoot Finance

Kerala based NBFC, Muthoot finance launched a new initiative to provide COVID-19 insurance to its gold loan customers. Kotak Mahindra’s general insurance and Muthoot finance limited have made a tie-up to provide COVID-19 special insurance only for its gold loan customers. The initiative as part of the ongoing customer loyalty program and it is called Muthoot Finance Ayush Gold Loan will provide an insurance cover up to 1 lakh.

This will be provided only under the Muthoot Super Loan Scheme(MSL). The Muthoot Super Loan (MSL)is a kind of gold loan offered to those customers who wish to avail of a higher loan amount against their gold. They are also providing a discount on the timely payment of the loan. Under this scheme, the minimum loan amount is 5 lakh and there is no maximum limit for the loan amount. The rate of interest is 21 percent to 23 percent per annum. Customers availing gold loans under the Super Loan scheme will be the beneficiaries of this Insurance cover. New complementary insurance scheme launched by the company due to the current coronavirus outbreak and it shows the commitment of the company towards its customers.

An offering of such insurance schemes is relevant in these days. During the pandemic period, the insurance companies claimed that there is an increase in new health insurance policyholders. So, by providing complimentary insurance cover under Muthoot Finance Ayush Gold Loan will help the company to attract more gold loan customer during this period. This scheme will be the USP of Muthoot finance gold loan. The company is expecting more demand for the gold loan because people are struggling to deal with the coronavirus pandemic.

Geroge Alexander Muthoot, Managing director said that the scheme aims to build confidence in customers by providing them with insurance coverage and help them move forward in life without fear. Jagjeet Singh Siddhu, EVP & Head, Multi-channel distribution, Kotak Mahindra General Insurance Company said that they are delighted to be part of the Muthoot Group, one of the most trusted brands in the country.

(This article was originally published in Passionate in Finance.)

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