Muthoot Finance app handles 55% of gold-loan interest repayments

Muthoot Finance said its iMuthoot app handled 55% of gold-loan interest repayments in the second quarter of financial year 2027 (Q2 FY 2027). Digital channels also originated 100% of unsecured cross-sell business, while Muthoot Finance recorded 5.5 million transactions across Muthoot Online and iMuthoot during the quarter.

How much of Muthoot Finance's gold-loan servicing is digital?

Muthoot Finance reported that 55% of gold-loan interest repayments were made through the iMuthoot app in Q2 FY 2027. The measure applies specifically to interest repayments rather than all gold-loan repayments, gold-loan balances or every customer interaction. The presentation therefore identifies app use in one recurring servicing activity, not a full digital-servicing ratio for the gold-loan portfolio.

Muthoot Finance reported a lower digital share for another gold-loan activity: 8% of gold-loan top-ups were initiated through iMuthoot in Q2 FY 2027. The 47-percentage-point gap between the interest-repayment and top-up figures shows that app use was reported as more prevalent for paying interest than for starting additional borrowing against an existing gold loan.

Muthoot Finance also said that loan proceeds can be credited straight to customer bank accounts through National Electronic Funds Transfer, Real Time Gross Settlement and Immediate Payment Service rails. These disbursement mechanisms sit alongside app-based servicing and provide a route for loan proceeds to move to bank accounts without describing all steps in the gold-loan process as digital.

What does 100% digital unsecured cross-sell origination mean?

Muthoot Finance said 100% of unsecured cross-sell business was originated through digital channels in Q2 FY 2027. Origination refers to the start of the business process, and the presentation does not state that underwriting, documentation, disbursement, repayment or collections for every unsecured loan are fully digital.

Muthoot Finance lists applications for new personal loans, new gold loans, top-ups, renewals and renewals with top-ups among the activities available through iMuthoot. Customers can also check offers, apply for new loans and receive payment links through WhatsApp, providing digital paths for loan applications and customer outreach that align with the disclosed unsecured cross-sell origination figure.

For unsecured-loan users, Muthoot Finance provides a self-service section for downloading signed loan agreements, repayment schedules and no-objection certificates. This is a post-origination document feature for unsecured loans, while the 100% figure applies to digital origination. The presentation does not quantify how many customers use this document-download service in Q2 FY 2027.

How large is Muthoot Finance's digital customer base?

Muthoot Finance reported 28 million iMuthoot app downloads and 6.7 million registered users in its Q2 FY 2027 presentation. Downloads and registered users are different measures: downloads record installation activity, while registered users identify users who have completed registration. The presentation does not disclose monthly active users, daily active users or an earlier-period comparison for either metric.

Muthoot Finance recorded 5.5 million transactions through Muthoot Online and iMuthoot in Q2 FY 2027. That total covers two digital properties, so it cannot be treated as an iMuthoot-only transaction figure. The presentation also does not divide the 5.5 million transactions between repayments, loan applications, top-ups, bill payments or other activities.

Muthoot Finance said customers can repay using Unified Payments Interface, net banking and point-of-sale terminals, with Unified Payments Interface AutoPay and electronic mandates available for equated monthly instalment collections. Its stack also accepts inbound repayments through the Bharat BillPay System, virtual-account remittances and standing-instruction mandates, adding several payment mechanisms behind the reported transaction activity.

What can customers do through the iMuthoot app?

Muthoot Finance says iMuthoot allows customers to repay loans, top up existing loans, renew loans, renew with a top-up, and apply for new gold, personal and loan-against-property products. The 8% share of gold-loan top-ups initiated through the app in Q2 FY 2027 shows that the top-up function was in use, although the presentation does not give a comparable figure for app-based new-loan applications or renewals.

Muthoot Finance also describes simplified do-it-yourself processes for quick top-ups. The company does not quantify the number of steps removed, processing-time changes or top-up approval rates. Its disclosed 55% app share for gold-loan interest repayments instead provides the clearest quantified indication of iMuthoot use for a servicing task during Q2 FY 2027.

For support, Muthoot Finance offers 24-hour conversational access through MATTU and MITTU, which it describes as artificial intelligence-enabled virtual assistants. The presentation also says WhatsApp can deliver payment links and loan offers, but it does not disclose chatbot conversations, payment-link conversion rates or the share of applications originating from WhatsApp.

Which systems connect Muthoot Finance's digital and branch processes?

Muthoot Finance says its infrastructure bridges physical and digital workflows through point-of-sale terminals at branches for repayments and direct credit facilities to customer bank accounts. This hybrid design is relevant because the 55% iMuthoot measure covers only gold-loan interest repayments in Q2 FY 2027, leaving a range of branch and non-app payment options available to customers.

Muthoot Finance lists a cloud-based customer relationship management system with application programming interface-led lead capture across digital channels. It also uses the MoEngage platform for customer outreach through WhatsApp and iMuthoot. These systems connect lead capture and communications with the app, but the presentation does not provide digital marketing spend, lead volumes or conversion data for Q2 FY 2027.

The company also identifies a centralised complaint and query module, real-time speech analytics for customer-staff interactions, and secure software-development practices across its technology stack. Muthoot Finance does not report complaint-resolution times, speech-analytics coverage, compliance outcomes or system-availability measures. Its platform list includes Muthoot Online, Muthoot customer relationship management, Muthoot Finance Core Financial Service Solution, M SalesNXT and iTracker.

How does digital use vary by Muthoot Finance product activity?

Muthoot Finance's disclosed digital measures vary materially by activity: 100% of unsecured cross-sell business was originated digitally, 55% of gold-loan interest repayments came through iMuthoot, and 8% of gold-loan top-ups were initiated through the app in Q2 FY 2027. These are distinct measures of origination, repayment and top-up initiation, so they do not form a single company-wide digital-adoption rate.

The comparison indicates that Muthoot Finance reported its highest digital share for unsecured cross-sell origination and its lowest for gold-loan top-up initiation. The 5.5 million transactions across Muthoot Online and iMuthoot provide a separate volume measure, but the presentation does not allocate that volume by product. As a result, it does not show how many transactions generated each of the three percentage disclosures.

Conclusion

Muthoot Finance's Q2 FY 2027 disclosures show that digital channels are handling defined parts of servicing and business origination. The central measure is the 55% iMuthoot share of gold-loan interest repayments, supported by 5.5 million transactions across its two digital properties and fully digital origination of unsecured cross-sell business.

The next disclosed area to watch is gold-loan top-up initiation, where iMuthoot accounted for 8% in Q2 FY 2027 and Muthoot Finance has introduced simplified do-it-yourself processes. The presentation provides no adoption target or date for further improvement, and it does not break down future transaction volumes by channel, product or payment type.