SBI and Muthoot Microfin launch co-lending initiative to support rural entrepreneurs

Muthoot Microfin, a microfinance institution based in Kochi, has started loan disbursals under its new co-lending partnership with the State Bank of India (SBI). The initiative is designed to provide affordable credit to rural entrepreneurs, with a focus on empowering women and supporting small businesses.

Under this collaboration, SBI has sanctioned a ₹500 crore limit, which will be disbursed in tranches of ₹100 crore.

Loans ranging from ₹50,000 to ₹3 lakh will be offered to eligible customers.

The target beneficiaries of this initiative are members of Joint Liability Groups (JLGs) involved in agricultural and allied activities, as well as individuals engaged in other income-generating ventures.

Currently, Muthoot Microfin operates across 20 states and 369 districts, and it plans to expand this initiative across India.

Sadaf Sayeed, CEO of Muthoot Microfin, commented, “Our collaboration with SBI enables us to offer affordable credit to women entrepreneurs, helping them grow their businesses and improve their livelihoods. By targeting rural and semi-urban India, we aim to create a sustainable impact and promote economic self-reliance.”

The co-lending initiative aligns with Muthoot Microfin’s mission to scale financial inclusion in rural areas.

In a separate development, the government is planning to introduce a collateral-free term loan scheme for micro, small, and medium enterprises (MSMEs) to strengthen their manufacturing capabilities. Finance Minister Nirmala Sitharaman announced that the scheme will soon be presented to the Cabinet.