Micro Financing by Muthoot Fincorp
We understand the deep-rooted need for the people to raise their living standards and income levels. We also understand that access to low-ticket credit can be a big step for people who have big dreams and limited means of achieving those dreams. Microfinance loans from Muthoot Microfin Ltd, one of the subsidiaries of Muthoot Fincorp ltd, provide access to reliable and affordable financial services to create a powerful economic platform for all.
Features and Benefits of Microfinance Loan
Muthoot Microfin Ltd provides thrift credit and other financial services and products of small ticket size to lower segment of customers predominantly in rural areas, semi urban and urban areas. Since we understand how important a small loan can be to achieve entrepreneurial dreams you thought were never possible, we make the process of microfinancing easier, with simple and quick loan approval and disbursal.
A Bouquet of Microfinance Loan Options
With an aim to develop inclusive microfinance loan options in India, we have divided our offerings… read more under three categories:
– Livelihood Solutions (income generation loans, sewing machine loans, daily loans), – Health & Hygiene (water purifier loan), and– Life Betterment Solution (education loans, mobile phone loans, solar lighting product loan, bicycle loan). Our principal loan product focuses on providing our customers with income-generating loans. The microfinance loans can lead to food security, asset building, funding children’s education and more.
Microloans For Women
We are focused on providing microfinance loans to women customers, predominantly in the rural areas.… read more We follow the Joint Liability Group (JLG) model of microfinance, where women are organised into groups of 5-10. Each woman must be engaged in an economic activity that is lawful, sustainable and has a stable cash flow. Each member mutually backs the guarantee of the other.
Quick & Easy Terms
We provide microfinance loans on easier terms as compared to banks and private money lenders for … read more microfinance in India. Our processes are also simple and quick, thus, bringing direct and local aid, and financial services to your doorstep, Muthoot Blue plays a key role in improving education, living standard, nutrition & health of their families, we are providing them easy access to microloans.
Microfinance Loan Eligibility Criteria
Microfinance is an agent of economic change and we make it available to rural and semi-urban people aiming to become business owners. The eligibility criteria to get the loan are minimal, encouraging more women to take credit to become entrepreneurs.
- On the lines of the Grameen bank scheme, Joint Liability Groups of 5-10 women is formed.
- Each member of this group should be a part of economic activity.
- The venture should be sustainable, legal and capable of maintaining a stable cash flow.
- The guarantee of each member is undertaken by the other members.
Our sister concern Muthoot Microfin Ltd. is a successful Microfinance Company of India, and through it we have helped empower hundreds of women to generate regular incomes for their families.
Documents Required For Microfinance Loan
We offer microfinance loans to women employed in economic activity. Our aim for microfinance in India:
Is a necessity to help people who need access to credit
Get it at the earliest possible and
Provide a sustainable avenue of income.
How to Apply for a Microfinance Loan
Applying for Microfinance in India through us is very simple:
The easiest way to apply for Microfinance is to be a part of the Joint Liability Group (JLG). An existing member of the JLG may recommend you as a new member eligible for a microfinance loan.
Visit your nearest Muthoot Microfin Ltd branch or contact on our toll free number 1800 102 1616 to know more.
We follow a very simple documentation process to enable quick approval and disbursal
Once the induction in the JLG is done, you have to engage in a legal economic activity.
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Frequently Asked Questions
The provision to provide small loans to small ticket borrowers is called Microfinance. The aim of a Microfinance company is to provide access to reliable and affordable financial services to the poor, especially to women and the economically weaker section of the society. It is the only meaningful way to eradicate poverty and help create a powerful economic and social effects. The scope for Microfinance in India is huge and can help kickstart the economy and provide entrepreneurial opportunities and employment for millions.
You can avail microfinance or microloans from Muthoot Microfin Limited, the subsidiary of Muthoot Fincorp ltd. It offers microfinance solutions to propel sustainable growth and alleviate poverty by providing them with the means to access business opportunities. Loans under its Livelihood Solutions include income-generating loans, dairy loans and sewing machine loans which are targeted towards rural women. Water purifier loans and other life better solutions are targeted towards people living in rural and urban localities. You can call us at 1800 102 1616 for more details.
A complete KYC process is required to take a microfinance loan. For this, you will have to present proof of identity and address. An AADHAR card can be used for both. Other documents needed for microfinance in India will vary with the product or service provided.
Microfinance has been recognised as one of the most effective tools for poverty alleviation and for women empowerment. The idea is simple – provide small and microloans to marginalised groups and help them become self-sufficient through entrepreneurial activities. Multiple studies show that rather than one-time access to capital, multiple access to microcredit can help people earn a steady and sustainable income.
The marginalised sections and people with low incomes traditionally do not access to banks due to a myriad of reasons. They fear rejection due to non-availability of documents and previous financial records. As such, they are left to rely on local money-lenders who charge an obnoxiously high-interest rate. Microfinance loans from Muthoot Fincorp (via its subsidiary, Muthoot Microfin Ltd.) is an effective way to bridge the gap. It provides access to credit for business and other needs at comparatively lower rates, with shorter and quicker processes.
Key benefits of microfinance in India include:
- Access to credit for the marginalised sections of the society
- Enables access to education and healthcare for people who do not have access and/or affordability
- Improves income and nutrition for families, especially women
- Smaller loans do not burden the individual and family and repayment is in easy installments
- An entrepreneur once successful will hire others, and it will lead to job and wealth creation
- Significant economic gains for the nation as a whole
First-hand account of customer experiences
BLUE SOCH STORIES
41 year old Ambika Chitravani, a traditional weaver from the locality was also forced to try other options as her family, consisting of her husband and three children, struggled to make both ends meet with the paltry income from weaving. She had earlier availed a micro finance loan from a local micro finance company but that wasn’t enough for a start. She then approached many banks and other micro finance companies for the capital but all of them denied her ... Read More
Thirty-year-old housewife turned entrepreneur Bismi M from Thenkasi in Tamil Nadu greets customers with a bright smile at her fancy shop. The mother of two children runs her shop in Paraiyadi street, Thenkasi with microfinance loans from Muthoot Microfin subsidiaries of Muthoot Fincorp. Her sales skill along with a variety of items at the shop helped her business to achieve success to an extent that she pays for rent, household expenses and school fees for her children. A friend of ... Read More
Deepa Udayakumar, a 34-year-old housewife from Vellakkamurani in Palakkad district of Kerala has been associated with their family run soda making business for decades. Five years ago, Deepa decided to start her own venture, but to break into a market which requires some capital investment; she needed to find a suitable micro finance company and an innovative approach to production. Deepa wanted to be a small, artisanal producer with the ability to experiment and make changes to her products to ... Read More
Devi is a 32 year old woman entrepreneur, living in a remote village called Kovaipudur in Coimbatore. She and her husband are fruit vendors in the nearby market. A couple of years back, the family expenses began to increase and they faced frequent financial difficulties. In fact, Devi has been doing the business for many years, but due to lack of financial management skills and borrowing money from local lenders at high interest kept her burdened without savings. At that ... Read More
I am Dhanalakshmi from Thirunellai in Palakkad, a 44-year-old mother of two children, believes that determination and perseverance are the key drivers of success. Ten years ago, me and my husband started a family business of making crispy bakery items at home. Unfortunately, a few years later both became ill and were unable to continue the business. At that time, I learned about Muthoot Microfin subsidiaries of Muthoot Fincorp from a friend and decided to avail micro financing loan from ... Read More
Gangamma, the 48-year-old housewife turned small time street vendor, from Kunigal in Tumakuru district of Karnataka has been associated with Muthoot Microfin subsidiaries of Muthoot Fincorp for over a year now. Earlier, she always found it difficult to fill her racks with enough items resulting in less cash flow from her business. Gangamma was looking for a small micro finance loan to raise working capital but had never worked with any micro finance company or banks, as she never had ... Read More
For the last 3 years, Geetha from Anikode in Palakkad district of Kerala along with 3 other women from her neighbourhood successfully runs a canteen at Palakkad municipal premises with the support of Muthoot Microfin subsidiaries of Muthoot Fincorp. Geetha and colleagues’ drive to own a small-scale canteen business didn’t just come out of their passion for cooking but came from necessity. With the support of Muthoot Microfin, Geetha and company didn’t have to look far when they decided to ... Read More
For the last 6 years, Kaleeswari from Virudhunagar district in Tamil Nadu has been running a small shop near her home for internet browsing, photostat, printing and with sales of office stationaries, but only with a nominal income for the first 3 years. However, her association with Muthoot Microfin a subsidiaries of Muthoot Fincorp three years ago changed things for good for the housewife turned micro entrepreneur with Muthoot Fincorp micro financing. She availed her first microfinance loan of ... Read More
Sridevi E from Kancheepuram in Tamil Nadu holds the true spirit of an entrepreneur as she runs a successful tailoring unit near her home. Five years ago, the 36-year-old housewife overcame the hurdles of poverty by starting her own tailoring unit besides her home. She used to earn an average of ₹ 150 per day which wasn’t enough for the family of five including two growing children. Luckily for her, she was introduced to a Relationship Officer of Muthoot Microfin ... Read More
Forty-six-year-old Shylaja from Keerikkadu near Kayamkulam is one among them. In Alappuzha district, women are employed in various stages of coir production, right from the peeling of coconut husk to the making of ropes from fine fibre. Much of the rope-making work done by them was on rudimentary spinning wheels because they were unable to buy new mechanised machines. Shylaja in order to raise enough money to buy machinery approached a local micro finance company. However, lenders either demanded for ... Read More
Subaida Mohammed Ali, aged 41 years is a resident of Thenkara, in Palakkad District of Kerala. Her family consisting of 7 members were dependent on her husband’s paltry income from daily labour. The pathetic situation forced Subaida to work hard on banana cultivation. Now, Subaida has set herself as a role model for the cash-strapped farmers in the region thanks to her association with Muthoot Microfin subsidiaries of Muthoot Fincorp that helped her to optimum resource utilisation. She wasn’t aware ... Read More
Pallavi Ganesh Jivankar is a 30 year old woman entrepreneur from remote Nagpur. After marriage and giving birth to twin sons, she wished to earn something of her own and provide good education to their growing children. but, she was confused about what business to do. After discussion with her husband, they got an idea of opening a stationery shop. It turned out to be a good idea, at first her husband helped with some investment. One year later she ... Read More
For the past 15 years, Syedali Fathima, a 37-year-old housewife turned shopkeeper from Thenkasi, Tamil Nadu, runs a small shop near her home with just enough earnings. However, since her association with Muthoot Microfin subsidiaries of Muthoot Fincorp 2 years ago, Fathima was introduced to Muthoot Microfin by a friend and joined a JLG at her neighbourhood as she was impressed by the organisation’s simple and hassle-free procedures. She used the first cycle Micro finance loan of ₹10,000 from that ... Read More
I am yajanthi from Mugapur West near Chennai in Tamil Nadu a few years back, I had been running from one bank to another hoping to get a small microfinance loan for the expansion of my business but everyone turned me down as I have nothing to provide them as collateral security. I thought my dream to start a small provisional store in our area will never come true until I was introduced to Muthoot Microfin subsidiaries of Muthoot Fincorp ... Read More
Mahalakshmi A, dwelling at Kosapalayam in Pondicherry is a successful micro entrepreneur managing a small ‘household items’ store in her village. However, her journey to success wasn’t a cake walk. Until 3 years ago, Mahalakshmi’s husband Arumugam – who is a driver, was the only earning member of the family, and his income was too small to maintain the family consisting of two college going children. She was searching for a dependable micro finance company and came to know about ... Read More
I am Girija Mohan from Parakodu, a small village in kerala’s Pathanamthitta District. Girija had tried to open small businesses in the past to earn a living but failed mainly due to lack of capital investment. However she never lost her confidence as she knew her talent in painting and artistry could be utilized to make some earning for her family, but the capital investment to start even a small venture remained an obstacle in front of her. The scenario ... Read More
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