365telugu.com online news,Mumbai, September 18, 2025:Godrej Capital, the financial services division of the Godrej Industries Group, announced that its subsidiary, Godrej Finance Limited (GFL), has partnered with Muthoot FinCorp to bolster credit access for Micro, Small, and Medium Enterprises (MSMEs) in Tier-2 and Tier-3 cities across India.
This collaboration leverages Muthoot FinCorp’s extensive network and deep market penetration in these regions to deliver tailored financial solutions.
The co-lending partnership focuses on offering Loans Against Property (LAP) ranging from INR 10 lakh to INR 75 lakh, with an average loan size of INR 15 lakh. Designed to meet the growing demand for accessible credit, the initiative will soon expand to include additional products such as gold loans and housing loans, further strengthening financial support for MSMEs.
This partnership integrates seamless digital processes to ensure rapid loan approvals, enhanced transparency, and adherence to the Reserve Bank of India’s co-lending guidelines. Under the agreement, Godrej Finance will assume 80% of the risk, while Muthoot FinCorp will cover the remaining 20%.
Muthoot FinCorp will manage underwriting, collections, and the end-to-end customer experience, with both partners collaborating on a shared policy framework to ensure regulatory compliance.
Manish Shah, MD & CEO of Godrej Capital, remarked, “Timely access to credit is critical for MSMEs, particularly in Tier-2 and Tier-3 cities where financial solutions are often scarce. Our partnership with Muthoot FinCorp enables us to provide simple, transparent, and swift lending options, empowering businesses to grow confidently and contributing to a more inclusive financial ecosystem.”
Shaji Varghese, CEO of Muthoot FinCorp, added, “MSMEs are vital to India’s economy, second only to agriculture in employment generation, yet they often face significant barriers to credit access.
With our extensive network of over 3,700 branches and the Muthoot FinCorp ONE app, we are well-positioned to serve these businesses. This partnership with Godrej Capital will further enhance our ability to meet the financial needs of MSMEs efficiently and effectively.”
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Godrej Finance Limited offers a diverse portfolio of loan products tailored to MSMEs and individual borrowers, including Loans Against Property, Udyog Loans Against Property for smaller funding needs, and unsecured Business Loans.
The partnership aims to disburse INR 250 crore in loans during the current fiscal year, targeting high-growth markets in North, South, and Western India. As one of the few NBFC-to-NBFC co-lending arrangements, this initiative adopts a digital-first approach, paving the way for broader participation in the rapidly expanding MSME lending sector.