Muthoot Fincorp Limited

Muthoot FinCorp, a family business with roots tracing back to 1887, has evolved into a nationwide financial services player, earning the ET Family Business of the Year-Large award. The company's success is attributed to its diversification, digital transformation, and expanded credit access, reflecting nearly 140 years of growth and adaptation.

Godrej Finance Limited (GFL) has entered a co-lending partnership with Muthoot FinCorp to enhance credit access for Micro Small and Medium Enterprises (MSMEs) in Tier-2 and Tier-3 cities. This partnership leverages Muthoot FinCorp’s extensive market presence and deep reach in these regions to provide much-needed financial support to growing businesses. The co-lending agreement focuses on offering Loan Against Property (LAP) ranging from INR 10 lakh to INR 75 lakh, with an average ticket size of INR 15 lakh. This product is designed to serve MSMEs across pan-India markets where demand for timely and accessible credit is strong. Plans include expanding the partnership to cover other products such as gold loans and housing loans. The collaboration features a seamless digital integration that aims to speed up loan approvals, enhance transparency, and ensure full compliance with the Reserve Bank of India’s (RBI) co-lending framework. Under this agreement, Godrej Finance assumes 80 percent of the credit risk, while Muthoot FinCorp manages the remaining 20 percent. Muthoot FinCorp will take responsibility for underwriting, loan collections, and managing the overall customer experience. Godrej Finance will ensure regulatory compliance through a jointly defined policy framework.