Muthoot Microfin enters into co-lending pact with SBI

Muthoot Microfin on Thursday said it has entered into a strategic co-lending partnership with the State Bank of India (SBI).

Under the agreement, Muthoot Microfin and SBI will co-lend to members of Joint Liability Groups (JLGs) who are engaged in agricultural and allied activities as well as other income-generating enterprises.

The loan amounts will range from a minimum of Rs 10,000 to a maximum of Rs 3 lakh.

With this collaboration, Muthoot Microfin Limited aims to extend its financial services to women entrepreneurs in rural and semi-urban regions across India, the Kochi-headquartered microfinance firm said in a statement.

"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," Muthoot Microfin CEO Sadaf Sayeed said.

Under the co-lending model, banks are permitted to co-lend with all registered NBFCs (including HFCs) on the basis of a prior agreement.