Muthoot Pappachan Chits

Muthoot Pappachan Chits

Chit Fund

Muthoot Pappachan group’s Muthoot Pappachan chits has a target of Rs. 3000 crore business by the end of fiscal year 2019-20.

  1. They plan an aggressive business expansion across non-metros in the southern region.
  2. From southern region the company is able to generate around Rs. 300 crore business now.
  3. The regulations also have been favourable to the company now in doing its business which coupled with the latest technology has been helpful in the company’s making a come back with a band.
  4. The subscribers that the company is targeting is around 15,000 in the coming fiscal year, when they want to capture the entire Tier 2 cities of Southern Region.
  5. In Karnataka they are operating in Bengaluru and soon plan to extend services at Mysuru and Hubballi. In Tamilnadu after Chennai they plan to expand to Coimbatore, Tiruppur, Tiruchi and Madurai.
  6. The other Southern States are to be covered during next fiscal year.
  7. The important factors that are favourable for the company’s chit business are:
    1. Clear policy frame work framework
    2. Strong branch network of its group
    3. Technology and digitally enabled onboarding of customer base
    4. Availability of Credit bureau scores

These help in reducing the risk level in assessing the credit worthiness of a customer.

Muthoot Fincorp:

Muthoot Fincorp’s network is of 3,600 branches which is spread across the country which offers facilities like a Home loan, Two wheeler loans, and such other Retail loans.  More than 65% of their network is spread over small towns and rural areas.

  1. They are able to muster around 1.5-2 lacs of new customers in a month, and they handle in a month over 25 lakh customers in toto.
  2. On an average, each branch would be interacting with 4,500 new customers every day which has led to their pitching up for a strong base for the chit business.


The chits business is making a comeback and the company had to exit in 1980 due to non-clarity on regulations and cost factor.

No Comments

Give a comment