Godrej Finance Limited (GFL), the lending arm of Godrej Capital, has entered a co-lending partnership with Muthoot FinCorp to boost credit availability for MSMEs in Tier-2 and Tier-3 cities. The alliance aims to disburse loans worth INR 250 crore in FY26 through Muthoot FinCorp’s network of 3,700+ branches.
Under the arrangement, GFL will assume 80% of the risk, while Muthoot FinCorp will handle underwriting, collections, and customer management. The offering will initially include loans against property ranging from INR 10 lakh to INR 75 lakh, with plans to expand into gold and housing loans.
Manish Shah, MD & CEO of Godrej Capital, said, “With our partnership with Muthoot FinCorp, we aim to bridge this gap for MSMEs by offering simpler, transparent, and faster lending solutions.”
Shaji Varghese, CEO of Muthoot FinCorp, added, “With our 3,700+ branches and Muthoot FinCorp ONE app, we will further contribute to the growth of MSMEs by meeting their financial requirements timely and effectively.”
The partnership leverages digital integration for faster approvals, transparency, and compliance with RBI’s co-lending framework, strengthening credit access in high-demand markets across India.
