Muthoot Microfin has entered into a Co-lending agreement with the State Bank of India (SBI) to empower women entrepreneurs, according to a filing made to the exchange on Thursday. Following this partnership, Muthoot Microfin intends to provide financial services to women entrepreneurs in rural and semi-urban areas across India.
Under the agreement, both Muthoot Microfin and SBI will co-lend to members of Joint Liability Groups (JLGs) involved in agricultural and allied activities, as well as other income-generating enterprises.
“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,” said Thomas Muthoot, Managing Director, Muthoot Microfin Ltd.
The loan amounts under this agreement will range from a minimum of Rs 10,000 to a maximum of Rs 3,00,000, offering significant support to women entrepreneurs from rural areas. This range of financial assistance is aimed at empowering women entrepreneurs to expand their businesses and enhance their livelihoods. The co-lending model seeks to make credit more accessible and affordable for rural women, thereby fostering their entrepreneurial pursuits.
“I am convinced that, with this partnership we will be able to offer wide range of products and services to our clients, most importantly it will help us in meeting the growing demand of our women entrepreneur clients in a cost-effective manner. Together with SBI, we are committed to fostering economic growth and self-sufficiency among women entrepreneurs in rural India,” said Sadaf Sayeed, CEO, Muthoot Microfin.
With a focus on addressing the financial needs of women entrepreneurs, the collaboration aims to generate positive socio-economic impact, promoting inclusive growth and development in rural India.