Godrej Finance, Muthoot FinCorp join forces to boost MSME loans

Business Sep 18, 2025

Godrej Finance and Muthoot FinCorp have teamed up to make it easier for small businesses (MSMEs) in Tier-2 and Tier-3 cities to get loans against property.
They're offering amounts from ₹10 lakh up to ₹75 lakh, aiming to enhance credit access for MSMEs, addressing the funding gap for local entrepreneurs who often struggle with access to credit.

Dividing the risk

Godrej Finance will cover 80% of the loan risk, while Muthoot FinCorp handles the rest and takes care of underwriting, collections, and the customer journey.
Both CEOs indicate that this move should speed up lending and make things simpler for MSMEs—helping more businesses grow where support is needed most.