Godrej Finance, a subsidiary of Godrej Capital on September 18 has entered into a co-lending partnership with Muthoot FinCorp to enhance credit access for MSMEs in Tier-2 and Tier-3 cities, according to the press release.
The co-lending partnership will offer loan against property ranging from Rs 10 lakh to Rs 75 lakh, with an average ticket size of Rs 15 lakh, release added.
“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,” Manish Shah, MD & CEO of Godrej Capital was quoted saying in a release.
Shaji Varghese, CEO of Muthoot FinCorp was also quoted saying in a release that with the new partnership with Godrej Capital for Loan Against Property offering to the sector, I am sure we will further contribute to the growth of MSMEs by meeting their financial requirements timely and effectively.
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, release added.
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