Muthoot Microfin announces co-lending partnership with State Bank of India to support women entrepreneurs
Muthoot Microfin Limited (NSE: MUTHOOTMF, BSE: 544055), a prominent microfinance institution based in Kochi, has entered into a strategic co-lending partnership with the State Bank of India (SBI). This collaboration is aimed at expanding financial services to women entrepreneurs in rural and semi-urban areas across India, marking a significant step towards financial inclusiveness.
Empowering Women Entrepreneurs Through Enhanced Financial Access
The partnership between Muthoot Microfin and SBI will focus on co-lending to members of Joint Liability Groups (JLGs) who are primarily engaged in agricultural, allied activities, and other income-generating enterprises. The loans provided will range from Rs 10,000 to a maximum of Rs 3,00,000. This initiative is expected to significantly boost the entrepreneurial prospects of women in these regions, providing them with the necessary capital to start and expand their businesses.
Thomas Muthoot, Managing Director of Muthoot Microfin Ltd., commented on the partnership, stating, “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.”
A Commitment to Economic Growth and Self-Sufficiency
Sadaf Sayeed, CEO of Muthoot Microfin Ltd., also shared his thoughts: “At Muthoot Microfin, we focus on the bottom of pyramid (BoP) households and promote women entrepreneurship. We constantly endeavor to provide innovative and cost-effective products to our BoP clientele. This partnership with SBI, the largest bank in India, will enable us to offer a wide range of products and services to our clients, most importantly helping us meet the growing demand of our women entrepreneur clients in a cost-effective manner.”
This strategic alliance is poised to foster economic growth and self-sufficiency among women entrepreneurs in rural India by providing them with improved access to financial resources.
Expanding Financial Inclusion in Rural India
This partnership not only signifies a major milestone for Muthoot Microfin in its ongoing efforts to enhance women’s economic activities through better micro-credit facilities but also highlights the role of major financial institutions like SBI in promoting inclusive financial services.
The collaboration between Muthoot Microfin and the State Bank of India is a commendable step towards enhancing financial inclusion in India. By focusing on women entrepreneurs in rural and semi-urban areas, this partnership not only aims to empower women but also contributes to the broader economic development of these regions. It reflects a strategic alignment of objectives between a leading microfinance player and India’s largest banking entity, focusing on sustainable development and long-term economic empowerment.