RBI grants NBFC-MFI license to Muthoot Microfin

Muthoot Pappachan Group will hive off its microfinance business into a separate company as RBI has granted NBFC-MFI license to Muthoot Microfin Ltd. – which the group had acquired and renamed for microfinance operations. The growth in loans by Microfinance Institutions (MFIs) and the improving regulatory environment for micro lenders had convinced the group to create a separate subsidiary for this business.
The new company, Muthoot Microfin Ltd., will commence operations in FY 2015-16. Currently, the group is offering micro finance loans through its flagship gold loan company – Muthoot Fincorp.
Mr Thomas Muthoot, Executive Director – Muthoot Fincorp said, “We already have the system in place to start operations of the new company. We felt it made sense to have a separate company for the micro finance business, as the operating environment and regulatory conditions have remarkably improved.”
Mr Sadaf Sayeed, COO – Microfinance Business, stated that the Group has an ambitious target of becoming one among the top 2 microfinance institutions in India by 2020. We are firmly placed among the top 7 microfinance operations in the country. Globally, we are recognised among the fastest growing microfinance operations in large MFI category.
MPG’s Microfinance division has disbursed above Rs. 3,800 crores into the rural sectors of India, serving more than 1 million women entrepreneurs. The microfinance operations are spread in 9 states and 1 Union Territory. The new Company will offer a wide range of customized financial products to rural customers by evaluating the need of community. The business already provides loan for water purifiers, sanitation, solar lantern and unique loan for dairy farmers.

Comments are closed.