By Bl Mumbai Bureau

Copyright thehindubusinessline

Godrej Capital’s subsidiary Godrej Finance, 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, a statement said.

The co-lending partnership will offer loan against property ranging from ₹10-75 lakh, with an average ticket size of ₹15 lakh.

Under the terms of the agreement, Godrej Capital will assume 80 per cent of the risk, with Muthoot FinCorp covering the remaining 20 per cent. Muthoot FinCorp will oversee underwriting, collections, and the customer journey, while the company will ensure regulatory compliance through a jointly defined policy framework.

With operations spanning pan-India, this offering is well-positioned to tap into markets with strong demand for accessible and timely credit, the financial services company said, adding that the partnership will soon be expanded to include other products such as gold loans and housing loans.

Godrej Capital is the financial services arm of Godrej Industries Group.

The partnership will ensure faster approvals, greater transparency, and compliance with RBI’s co-lending framework, it said.

“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,” said Manish Shah, MD & CEO of Godrej Capital.

Published on September 18, 2025