Muthoot Fincorp Limited (MFL), Thiruvananthapuram based NBFC (non-banking finance company),  is investing Rs 3 crore to ramp up its branch network in Karnataka to 45 branches from 20 by March 2008. MFL’s 460-branch network spans states of Kerala, Tamil Nadu, Karnataka, Maharashtra and Andhra Pradesh. Plans are to add 85 more branches in these states by March 2008. The company which entered Karnataka in 2003,  services 30,000 customers a day who are mostly from semi-urban and rural areas.
Speaking to Deccan Herald, Managing Director Thomas John Muthoot said “our total loan disbursement for fiscal 2006 is Rs 3,000 crore. We are targeting a 40 per cent increase this fiscal. Although Tamil Nadu is our largest market, Karnataka is catching up fast.” MFL disburses loans starting from Rs 1,000 upto Rs 50 lakh. Mr Muthoot said “Our unique selling proposition vis-a-vis commercial banks is 3-minute service. All one has to do to avail a loan is to walk into MFL office, hand over collateral (gold) to the appraiser and avail the loan. All this, without the bother of having to going through formalities like producing proof of identity for loans above Rs 15,000 — Rs 20,000.”