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Muthoot Finance Share Price Hits Record High as Gold Loan Rule Easing Fuels Rally

Written by: Kusum KumariUpdated on: Jun 9, 2025, 4:35 PM IST
Muthoot Finance share price soars to ₹2,548, crossing ₹1 lakh crore market-cap as RBI relaxes gold loan norms, boosting growth prospects and investor confidence.
Muthoot Finance Share Price Hits Record High as Gold Loan Rule Easing Fuels Rally
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Muthoot Finance share price jumped 4.2% on June 9, hitting a new all-time high of ₹2,548. This marks the seventh straight day of gains, taking its market value above ₹1 lakh crore for the first time.

Boost from Relaxed Gold Loan Guidelines

The rally comes after the Reserve Bank of India (RBI) announced new gold loan rules. The RBI raised the Loan-to-Value (LTV) ratio for loans under ₹2.5 lakh from 75% to 85%, allowing lenders to offer larger loans against gold. The revised guidelines also removed mandatory provisions in case of LTV breaches and reduced paperwork for loans above ₹2.5 lakh.

Gold Loan NBFCs See a Surge

Other gold loan-focused NBFCs like Manappuram Finance and IIFL Finance also surged over 10% in two sessions after the news. The easier norms are expected to boost demand and improve yields for these companies.

About Muthoot Finance Ltd

Muthoot Finance Ltd is a leading Indian financial company and the country’s largest non-banking finance company (NBFC) specialising in gold loans. Along with gold financing, it also provides various other loan products, insurance services, money transfers, and sells gold coins.

Read More: MCX Share Price Hits 52-Week High on June 9; Receives SEBI Nod to Launch Electricity Derivatives in India.

Muthoot Finance Share Price Performance

As of June 9, 2025, Muthoot Finance share price closed at ₹2,542.90, marking a 3.95% gain for the day. Over the past 5 days, the stock has risen by ₹320.70 (14.43%), and in the past month, it has gained ₹313.30 (14.05%). In the last 6 months, the stock surged ₹551.60 (27.70%), while over the past year, it jumped ₹783.50 (44.53%). Over a 5-year period, Muthoot Finance has delivered an impressive return of ₹1,563.30, or 159.59%.

Conclusion

Muthoot Finance’s record rally reflects strong investor optimism, driven by regulatory support. With relaxed norms and rising gold prices, the company is well-placed for short-term growth.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Jun 9, 2025, 4:35 PM IST

Kusum Kumari

Kusum Kumari is a Content Writer with 4 years of experience in simplifying financial market concepts. Currently crafting insightful content at Angel One, She specialise in breaking down complex topics into easy-to-understand pieces, blending expertise in market fundamentals and technical analysis.

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