Muthoot Microfin Limited is the microfinance arm of Muthoot Pappachan group (MPG). Established in 1887, the Muthoot Pappachan Group (MPG) is a diversified conglomerate with an overwhelming presence in multiple verticals.
Muthoot Microfin was established as a part of business diversification and to offer more impetus to its microfinance operations initiated since 2010 as a division of Muthoot Fincorp Ltd., the flagship company of MPG. Muthoot Microfin Ltd. was granted NBFC-MFI license by RBI in 2015. MPG will wholly hive off the microfinance business to the newly licensed company in 2015-16 Financial Year.
Muthoot Microfin is dedicated to serve the bottom of pyramid section of society by providing customised financial services to the needy, underserved and those who have limited access to regular financial institutions and banks.
Microfinance operations of the company is based on the Grameen model of lending; it is designed to promote entrepreneurship among women and inclusive growth. The institution provides financial assistance through micro loans to women engaged in small income generating activities. The company also facilitates entrepreneurship development and harnesses entrepreneurship skills through skill development workshops and financial literacy classes for its clients.