Godrej Finance Partners Muthoot FinCorp to Expand MSME Lending via Property-Backed Loans

• Aims to achieve disbursals of INR 250 crore in FY26.

Godrej Capital, is the financial services arm of Godrej Industries Group. Godrej Capital’s subsidiary, Godrej Finance (GFL), has entered a co-lending partnership with Muthoot FinCorp to enhance credit access for MSMEs in Tier-2 and Tier-3 cities, building on Muthoot FinCorp’s strong presence and deep market reach in these regions.

L to R: Vinod Reddy, CBO – Secured & Unsecured Lending Business, Muthoot FinCorp, Manish Shah, MD & CEO, Godrej Capital, Shaji Varghese, CEO, Muthoot FinCorp, Pankaj Gupta, MD & CEO, Godrej Finance – a subsidiary of Godrej Capital, Shalinee Mimani, CRO, Godrej Capital

The co-lending partnership will offer loan against property ranging from INR 10 lakh to INR 75 lakh, with an average ticket size of INR 15 lakh. With operations spanning pan-India, this offering is well-positioned to tap into markets with strong demand for accessible and timely credit. The partnership will soon be expanded to include other products such as gold loans and housing loans.

Through a seamless digital integration, this partnership will ensure faster approvals, greater transparency, and compliance with RBI’s co-lending framework. Under the terms of the agreement, the company will assume 80% of the risk, with Muthoot FinCorp covering the remaining 20%. Muthoot FinCorp will oversee underwriting, collections, and the customer journey, while the company will ensure regulatory compliance through a jointly defined policy framework.

Manish Shah, MD & CEO of Godrej Capital stated, “Access to timely credit can make all the difference for a growing business, especially in Tier-2 and Tier-3 cities where it is needed the most. With our partnership with Muthoot FinCorp, we aim to bridge this gap for MSMEs by offering simpler, transparent, and faster lending solutions. Our endeavour is to help businesses grow with confidence while contributing to a stronger and more inclusive financial system.”

Shaji Varghese, CEO of Muthoot FinCorp added, “MSMEs are the largest contributor of employment in the country after agriculture but access to credit is a pertinent challenge faced by the sector. With our 3700+ branches and Muthoot FinCorp ONE app, we have expanded our reach to the hinterlands ensuring accessibility to these MSMEs. With our new partnership with Godrej Capital for Loan Against Property offering to the sector, I am sure we will further contribute to the growth of MSMEs by meeting their financial requirements timely and effectively”.

Through its subsidiary GFL, the company offers a diverse range of loan products to meet the varying needs of MSMEs and individual borrowers. These include offers such as Loan Against Property, Udyog Loan Against Property for smaller-ticket requirements, and unsecured Business Loans.

The alliance is targeting disbursals of INR 250 crore in this fiscal year, with a strong focus on high-potential markets across North, South, and Western India. As one of the few co-lending partnerships between NBFCs, it reflects a robust digital-first approach and sets the stage for broader participation in the fast-growing MSME lending space.

Godrej Capital Launches NIRMAAN, a Digital Platform to Help MSMEs Grow their Businesses to their Potential

• Curated platform to provide MSME owners an all-inclusive opportunity to grow their businesses to their potential. 
• Godrej Capital has partnered with trusted brands like Amazon Global Selling, Onsurity, Zolvit, and MSMEx to provide solutions around core challenges faced by MSMEs and will look to enhance its partner network in the near future. 

Godrej Capital, the financial services arm of the Godrej Group, today announced its new digital platform, Nirmaan, to provide MSME owners an all-inclusive opportunity to grow their businesses. Carefully curated, Godrej Capital Nirmaan packs a range of partners that provide services critical to the growth of MSMEs.

The MSMEs in the country today face challenges like limited access to the market and the ability to expand beyond their regional reach, lack of know-how about legal and regulatory compliance requirements, Limited access to technology, hiring and retaining a skilled workforce, and limitation of access to credit. Godrej Capital Nirmaan aims to solve these challenges and provide services under the categories of ''Grow the Business,'' ''Ease Business Operations,'' and ''Transformation through upskilling.''

The company has initially partnered with Amazon Global Selling, Onsurity, Zolvit, and MSMEx to help increase the potential market reach, simplify legal and compliance, enhance employee health and welfare, and provide business coaching for small businesses. In addition, while Godrej Capital Nirmaan users get product & pricing offerings at a discounted price point, Godrej Capital customers will be entitled to additional and exclusive pricing benefits.

Furthermore, the flagship platform is the first in the BFSI industry in India. It goes beyond its core lending offering and provides value-added services encompassing business growth opportunities, ease of business, and knowledge and network avenues.

Speaking on the launch, Manish Shah, MD & CEO at Godrej Capital, said, "The Godrej Group has a longstanding commitment to contributing to the growth of the Indian economy, and through Godrej Capital, we are proud to launch Nirmaan, which will enable MSMEs to grow their fullest potential and thus drive economic growth of the country. We have closely studied the growth challenges of MSMEs in the country, and along with the lending services we already provide, with Nirmaan, we can help solve some of those challenges and support the sector's growth."

Godrej Capital is focused on bringing more value-adding services to the platform through strategic partnerships and keeping updated with the challenges that must be solved.

In this initial launch phase, services will be promoted in 30 key markets across India but available in all corners of India.

Godrej Capital has, so far, has disbursed over INR 5300 crores since inception in November 2020 across housing, SME, and MSME loans. In addition, it has expanded its presence across 13 cities in India.