Muthoot Fincorp (MFL), part of Muthoot Pappachan Group, expects to generate Rs 1,000 crore business from sale of gold coins in financial year 2012.

The Kerala-based company has sold 655,351 gm of gold coins for Rs 135.18 crore for the April 2010 till date period. It plans to do business worth Rs 250 crore more by end of financial year 2011, thus taking the total business from gold coins to Rs 385 crore.

“We are bullish about the prospects of gold coins and we have already created a record. For financial year 2012, we aim to do business of Rs 1,000 crore. We are also mulling sale of silver coins, but gold would be our main focus,” George Muthoot, director of Muth­oot Pappachan Group, said.

The group also expects its special gold coin scheme to add to the glitter. The sch­eme named ‘Swarnavarsham’ enables a customer to purchase gold bars of 99.9 per cent purity at the rate prevailing on the day of purchase, but repayable in equated monthly instalments (EMIs) extending up to 36 months. The firm has tied up with Rajesh Exports for the product.

A customer can enroll in this scheme if they have valid photo identification and by depositing a nominal amount as margin money.

“Gold price has always been on the rise. We are helping customers buy gold at today’s price for future and allowing them to pay in EMIs. The need of even the smallest investor is taken care of as there is facility for daily repayment,” Muthoot added. Customers can cho­ose from a wide array of denominations ranging from 1 gm to 100 gm based on requirement and repay.

The gold bar will be held by MFL and handed over to the customer on completion of EMI payments. “Our sch­eme can be compared with SIPs (systematic investment plans) in mutual funds. We’re selling gold as an investment, rather than for speculative purposes,” Muthoot said.