Godrej Finance, Muthoot Join Hands To Boost MSME Lending

22 Sep 2025 CW Team

The agreement focuses on providing loans against property (LAP) ranging from Rs 1 million to Rs 7.5 million, with an average ticket size of Rs 1.5 million. The product will serve MSMEs across pan-India markets where timely and accessible credit is in demand. The partnership will later expand to include other offerings such as gold loans and housing loans.

A seamless digital integration underpins the arrangement, designed to speed up loan approvals, increase transparency, and ensure compliance with the Reserve Bank of India’s co-lending framework. Godrej Finance will assume 80 per cent of the credit risk, while Muthoot FinCorp will manage the remaining 20 per cent. Muthoot FinCorp will handle underwriting, loan collections, and customer experience, while Godrej Finance ensures regulatory compliance through a jointly defined policy.

Manish Shah, MD & CEO of Godrej Capital, said timely credit is vital for business growth, particularly in smaller cities. He noted that the partnership is aimed at bridging credit gaps for MSMEs by offering faster, simpler, and transparent lending options.

Muthoot FinCorp CEO Shaji Varghese stressed the critical role of MSMEs in employment generation, second only to agriculture, and acknowledged their challenges in accessing finance. With over 3,700 branches and its Muthoot FinCorp ONE app, the company is positioned to extend services to underserved regions, with the LAP offering strengthening MSME growth.

Through Godrej Finance, GFL already provides a wide range of business loan products, including unsecured business loans and Udyog LAP for smaller financing needs. The partnership expects to disburse Rs 2.5 billion in the current financial year, with a focus on high-potential markets in Northern, Southern, and Western India.

Godrej Finance Limited (GFL) has entered a co-lending partnership with Muthoot FinCorp to improve credit access for micro, small and medium enterprises (MSMEs) in Tier-2 and Tier-3 cities. The collaboration leverages Muthoot FinCorp’s wide market presence to deliver much-needed financial support to growing businesses.The agreement focuses on providing loans against property (LAP) ranging from Rs 1 million to Rs 7.5 million, with an average ticket size of Rs 1.5 million. The product will serve MSMEs across pan-India markets where timely and accessible credit is in demand. The partnership will later expand to include other offerings such as gold loans and housing loans.A seamless digital integration underpins the arrangement, designed to speed up loan approvals, increase transparency, and ensure compliance with the Reserve Bank of India’s co-lending framework. Godrej Finance will assume 80 per cent of the credit risk, while Muthoot FinCorp will manage the remaining 20 per cent. Muthoot FinCorp will handle underwriting, loan collections, and customer experience, while Godrej Finance ensures regulatory compliance through a jointly defined policy.Manish Shah, MD & CEO of Godrej Capital, said timely credit is vital for business growth, particularly in smaller cities. He noted that the partnership is aimed at bridging credit gaps for MSMEs by offering faster, simpler, and transparent lending options.Muthoot FinCorp CEO Shaji Varghese stressed the critical role of MSMEs in employment generation, second only to agriculture, and acknowledged their challenges in accessing finance. With over 3,700 branches and its Muthoot FinCorp ONE app, the company is positioned to extend services to underserved regions, with the LAP offering strengthening MSME growth.Through Godrej Finance, GFL already provides a wide range of business loan products, including unsecured business loans and Udyog LAP for smaller financing needs. The partnership expects to disburse Rs 2.5 billion in the current financial year, with a focus on high-potential markets in Northern, Southern, and Western India.

Resources

03 Jun 2026

Jyoti Structures Launches Heat Safety Drive Across Sites

Jyoti Structures (JSL) has strengthened heat safety measures across its project sites and manufacturing facilities as temperatures rise across India. The company has implemented a Summer Safety Plan covering all transmission line projects to address risks related to heat stress, dehydration and worker fatigue.The initiative includes rescheduling work away from peak afternoon temperatures, provision of drinking water, ORS and lemon-salt solutions, and installation of rest shelters near work areas. Daily toolbox talks, worker health monitoring, first-aid preparedness, emergency transport arrange..

Real Estate

03 Jun 2026

MHADA Declares 82 Buildings Most Dangerous in Central and South Mumbai

The Maharashtra Housing and Area Development Authority (MHADA) has declared 82 buildings as most dangerous across Central and South Mumbai and has appealed to residents to vacate immediately. The list, prepared after structural assessments by the authority, identifies buildings judged to pose imminent risk to occupants and to passersby. Local civic bodies have been asked to coordinate evacuations and to make arrangements for temporary shelter and rehabilitation for displaced households. Officials said the authority prioritised buildings with visible structural distress, severe cracking, tiltin..

Infrastructure Transport

03 Jun 2026

Damage Reported At Halwara Airport Terminal After First Rains

Severe damage was reported at the terminal of Halwara Airport during the first major rain spell of the season, prompting immediate concern among aviation and local authorities. Images from the site showed water ingress and visible deterioration of the terminal interior, affecting passenger areas and ancillary services. The airport authority suspended certain operations temporarily to assess structural safety and ensure passenger wellbeing. Preliminary inspections have prioritised electrical systems and roof seals to prevent further water ingress. State aviation officials ordered a formal inqui..