Muthoot Microfin and SBI Joined Forces to Lend Money to Joint Liability Groups

On June 06, 2024, Muthoot Microfin Limited, a leading microfinance institution headquartered in Kochi, announced a significant milestone. The company entered a strategic co-lending partnership with the leading commercial bank, State Bank of India (SBI). With this collaboration, Muthoot Microfin Limited aims to extend its financial services to women entrepreneurs in rural and semi-urban regions across India.

Objective of Partnership

As per the terms of this arrangement, SBI and Muthoot Microfin would jointly lend money to Joint Liability Groups (JLGs) members who are involved in income-generating ventures such as agriculture and related fields. With loan amounts ranging from a minimum of ₹10,000 to a high of ₹3,00,000, women entrepreneurs from rural areas would receive a significant boost.

This partnership signifies a major milestone in Muthoot Microfin’s ongoing efforts to help women’s economic activities through better micro-credit facilities.

“India’s microfinance sector is experiencing sustained growth, and we are proud to be at the forefront of this transformation. Our collaboration with SBI will enable us to deepen our reach by addressing the diverse financial needs of rural women. Providing these women entrepreneurs with access to credit and supporting them in their entrepreneurial journey is our aspiration with this partnership. We are committed to making a positive and lasting impact on the lives of millions of rural women in India,” said Mr Thomas Muthoot, Managing Director, Muthoot Microfin Ltd.

“At Muthoot Microfin, we focus on the bottom of the pyramid (BoP) households and promote women entrepreneurship. We constantly endeavour to provide innovative and cost-effective products to our BoP clientele. Making progress in this direction and taking financial inclusion to the next level, we have collaborated with the largest bank, i.e., State Bank of India, ” said Mr Sadaf Sayeed, CEO of Muthoot Microfin Ltd.

He further added, “I am convinced that with this partnership, we will be able to offer a wide range of products and services to our clients, most importantly, it will help us meet the growing demand of our women entrepreneur clients in a cost-effective manner. Together with SBI, we are committed to fostering economic growth and self-sufficiency among women entrepreneurs in rural India.

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