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Johannesburg, South Africa – In a significant move for the microfinance sector, Belstar Microfinance, a key arm of Muthoot Finance, has officially begun offering gold loans across its expanding network of branches. This development follows recent relaxations of regulations by the Reserve Bank of India (RBI), opening up new avenues for accessible lending to individuals and small businesses.

For years, Belstar has been a leading provider of microfinance solutions, primarily focused on income generation loans. The introduction of gold loans marks a strategic diversification, catering to a broader range of financial needs within the Indian market. Gold loans have traditionally been a popular and accessible form of credit in India, particularly for those who may not have access to traditional banking services. The RBI’s revised guidelines have made it easier for microfinance institutions like Belstar to participate in this market.

“This is a pivotal moment for Belstar and for Muthoot Finance as a whole,” stated a spokesperson for Muthoot Finance. “The ability to offer gold loans expands our reach and allows us to serve a wider segment of the population with tailored financial solutions. We are confident that this will contribute to both individual economic empowerment and the overall growth of small businesses.”

The move comes as Muthoot Finance itself reports robust financial performance. The company recently announced impressive profit growth in the first quarter of FY26 (Q1FY26). This strong showing is attributed to a combination of factors, including increased loan disbursements, effective cost management, and a generally positive economic outlook.

Key Highlights of Muthoot Finance's Q1FY26 Performance:

• Significant increase in net profit compared to the previous year.
• Strong growth in loan assets, reflecting increased demand for financial products.
• Improved operational efficiency and cost optimization.
• Positive impact from the evolving regulatory landscape.

The RBI’s easing of norms surrounding gold loans is expected to further boost the microfinance sector. Previously, stringent regulations had limited the ability of MFIs to engage in this type of lending. The changes now allow for greater flexibility and innovation in product offerings.

Analysts predict that the combination of Belstar's expansion into gold loans and Muthoot Finance’s ongoing financial success will create a powerful synergy, driving further growth and solidifying their position as leaders in the Indian microfinance industry. The company remains committed to responsible lending practices and ensuring financial inclusion for all segments of society.

Looking ahead, Muthoot Finance and Belstar Microfinance are poised to capitalize on the opportunities presented by the evolving economic landscape and the supportive regulatory environment. The focus will remain on providing accessible and affordable financial solutions to empower individuals and businesses across India.