SBI and Muthoot Microfin launch co-lending initiative

26 Nov 2024 , 03:23 PM

Muthoot Microfin, a Kochi-based microfinance firm, has begun loan disbursements through its new co-lending agreement with the State Bank of India (SBI). The initiative aims to provide affordable finance to rural entrepreneurs, with a particular emphasis on empowering women and assisting small companies.

SBI has approved a ₹500 Crore loan to be delivered in ₹100 Crore tranches as part of this partnership.

Loans from ₹50,000 to ₹3 Lakh will be provided to qualified consumers.

The initiative’s intended beneficiaries include members of Joint Liability Groups (JLGs) engaged in agricultural and related industries, as well as persons engaging in other income-generating initiatives.

Muthoot Microfin currently works in 20 states and 369 districts, with hopes to expand the project across India.

The co-lending program supports Muthoot Microfin’s objective to increase financial inclusion in rural communities.

In a related move, the government intends to implement a collateral-free term loan scheme for micro, small, and medium-sized firms (MSMEs) to help them improve their manufacturing capacity. Finance Minister Nirmala Sitharaman has indicated that the scheme will be submitted to the Cabinet shortly.

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