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