Muthoot Microfin, the Kochi-based microfinance institution, has initiated loan disbursals under its co-lending partnership with the State Bank of India.
Under the collaboration, SBI has sanctioned a ₹500 crore limit to be disbursed in tranches of ₹100 crore. Loan amounts ranging from ₹50,000 to ₹3 lakh will be extended to identified and eligible customers, focusing primarily on members of Joint Liability Groups (JLGs) engaged in agricultural and allied activities, as well as other income-generating ventures.
Currently, Muthoot Microfin, operating in 20 states, plans to roll out this initiative pan-India to ensure broader access to credit for rural entrepreneurs. The collaboration with SBI enables lower interest rates, making loans more affordable while promoting financial inclusion and fostering self-sufficiency in underserved communities.
Sadaf Sayeed, CEO of Muthoot Microfin, told reporters that the partnership with SBI enables it to deliver affordable credit to women entrepreneurs, helping them grow their businesses and improve their livelihoods. With this collaboration, the company aims to meet the growing demand for financial solutions across rural and semi-urban India, empowering communities through economic self-reliance.
Muthoot Microfin is committed to scaling this co-lending initiative to new regions and sectors while tailoring products to meet diverse micro-entrepreneurial needs. The organisation also continues to explore innovative approaches to expand its reach and ensure the initiative remains impactful and sustainable, he said.