SBI has sanctioned a limit of Rs500 crore under the co-lending model, to be disbursed in tranches of Rs100 crore. Identified and eligible customers can avail of loans ranging from Rs50,000 to Rs3 lakhs
FinTech BizNews Service
Mumbai, 22 November, 2024: Muthoot Microfin, a leading microfinance institution headquartered in Kochi, has initiated loan disbursals under its co-lending partnership with the State Bank of India (SBI), the country’s largest lender. Under this collaboration, SBI has sanctioned a R500 crore limit, to be disbursed in tranches of Rs100 crore. Loans ranging from Rs50,000 to Rs3 lakhs 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 operating across 20 states and 369 districts, Muthoot Microfin plans to make this initiative available pan-India, ensuring broader access to credit for rural entrepreneurs. The collaboration with SBI enables lower interest rates, making loans more affordable for borrowers while driving financial inclusion and fostering self-sufficiency in underserved communities.
Speaking about the initiative, Mr. Sadaf Sayeed, CEO, Muthoot Microfin said, "Our unique partnership with India’s largest lender, SBI, enables us to deliver affordable credit to women entrepreneurs, helping them grow their businesses and improve their livelihoods. With this collaboration, we aim to meet the growing demand for financial solutions across rural and semi-urban India, creating a sustainable impact and 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 suit diverse micro-entrepreneurial needs. The microfinance organisation also continues to explore innovative approaches to expand its reach and ensure the initiative remains impactful and sustainable.
