Gold loan company Muthoot Finance has partnered with Lulu Exchange to facilitate NRIs living in the UAE to make gold loan repayments on behalf of their relatives back in India.
Muthoot Finance has inked a memorandum of understanding (MoU) with money exchanger and transferor Lulu International Exchange to act as a collection agent. Muthoot Finance has inked a memorandum of understanding (MoU) with money exchanger and transferor Lulu International Exchange to act as a collection agent.
The country's largest gold loan non-banking finance company (NBFC) said it will bring the convenience of easy money transfer to over 4 lakh non-resident Indians (NRIs)living in the UAE whose relatives have availed gold loans back home.
India is the world's largest recipient of remittances and the share from the Gulf Cooperation Council (GCC) is higher in Kerala, Tamil Nadu and Karnataka. Under this facility, NRIs can make repayment of gold loans for their next of kin at a special rate from any of the 89 branches of Lulu Exchange across the UAE. Besides, they can pay digitally through Lulu Money.
The beneficiaries can receive the money intended for gold loan repayment in their loan accounts for which Muthoot Finance has partnered with its US-based money transfer service Muthoot Finserv. Settled on a real-time basis, NRIs will be charged a nominal fee for the remit service, Muthoot Finance said in a release on Tuesday.
"This partnership will enhance the cross-border repayment experience to be quicker and reliable. NRIs can use Lulu Exchange branches to repay the gold loan instalments of their relatives who have availed a gold loan from Muthoot Finance," George Alexander Muthoot, Managing Director, Muthoot Finance said. Richard Wason, CEO, LuLu Financial Group, said this will be of immense benefit to Muthoot's customers in the UAE.Muthoot Finance had consolidated assets under management at Rs 64,494 crore in FY22.