Excelsior Correspondent
JAMMU, Sept 18: To enhance credit access for MSMEs in Tier-2 and Tier-3 cities, Godrej Capital’s subsidiary, Godrej Finance (GFL) today entered a co-lending partnership with Muthoot FinCorp, here today.
The co-lending partnership will offer Loan Against Property (LAP) ranging from Rs 10 lakh to Rs 75 lakh, with an average ticket size of Rs 15 lakh.
Under the terms of the agreement, the company will assume 80% of the risk, with Muthoot FinCorp covering the remaining 20%.
Muthoot FinCorp will oversee underwriting, collections and the customer journey, while the company will ensure regulatory compliance through a jointly defined policy framework.
Speaking on the occasion, Manish Shah, MD & CEO of Godrej Capital said, “Access to timely credit can make all the difference for a growing business, especially in Tier-2 and Tier-3 cities where it is needed the most. With our partnership with Muthoot FinCorp, we aim to bridge this gap for MSMEs by offering simpler, transparent and faster lending solutions. Our endeavour is to help businesses grow with confidence while contributing to a stronger and more inclusive financial system.”
Shaji Varghese, CEO of Muthoot FinCorp added, “MSMEs are the largest contributor of employment in the country after agriculture but access to credit is a pertinent challenge faced by the sector. With our 3700+ branches and Muthoot FinCorp ONE app, we have expanded our reach to the hinterlands ensuring accessibility to these MSMEs. With our new partnership with Godrej Capital for LAP offering to the sector, I am sure we will further contribute to the growth of MSMEs by meeting their financial requirements timely and effectively”.
The alliance is targeting disbursals of Rs 250 crore in this fiscal year, with a strong focus on high-potential markets across North, South and Western India.
As one of the few co-lending partnerships between NBFCs, it reflects a robust digital-first approach and sets the stage for broader participation in the fast-growing MSME lending space.
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