Muthoot FinCorp ONE Rolls Out Loans for MSMEs Basis their Digital Footprint
Delhi, India, December 2, 2024 –Muthoot FinCorp ONE, a strategic business unit (SBU) and the digital platform of Muthoot FinCorp Ltd. (MFL) continues to break new ground in digital finance with its digital footprint-based lending program for small business owners. Designed for enterprises using QR-code based apps for daily collections, this offering provides loans up to ₹5,00,000 with daily repayment option.
This lending product leverages QR-code transaction histories to offer credit to small business owners who often lack formal financial access despite demonstratingstrong cash flows. Muthoot FinCorp ONE also helps them grow as their loan repayment is simplified through automated daily deductions/repayments, thereby providing financial flexibility.
Thanks to strategic partnerships with India’s top digital payment platforms, this lending program represents a breakthrough in India’s digital lending landscape, combining the benefits of data-driven credit assessment, end to end digital journey and automated repayment options to medium and small enterprises (MSMEs) nationwide.
Chandan Khaitan, CEO, Muthoot FinCorp ONE shared his excitement, saying, “India has roughly 60Mn Informal Micro Enteprises (IMEs). It is one of the largest employment creators in the country and contributes significantly to the country’s GDP. The aim of QR-code based lending program is to make credit accessible to such IMEs who traditionally face barriers in accessing formal finance. This product is designed around their daily business needs, enabling sustainable growth. By aligning credit access with digital cash flow data, we offer MSMEs a new path to financial strength.”
He further added, “this approach enabled quick funds access with daily automatic repayments, eliminating manual effort. Using this method, we streamline lending and support financial growth while promoting repayment discipline among small businesses. This is financial inclusion in action, driving a significant impact on India’s entrepreneurial community. Since launch we have enabled more than 75,000 IMEs.”
Muthoot FinCorp ONE’s QR-code based lending program aligns with Muthoot FinCorp Ltd.’s mission to empower the lives of the common man, by making loans more accessible and affordable for small business owners.
Thomas John Muthoot, Chairman & Managing Director, Muthoot FinCorp Ltd., stated, “Muthoot FinCorp ONE’s QR-code-based lending program is a transformative initiative for India’s MSMEs, particularly in underserved regions. By harnessing technology and leveraging trusted partnerships, we have created a lending solution that is simple, scalable, and tailored to the daily cash flow needs of small business owners. This initiative aligns with the Finance Minister’s vision, articulated in the last budget, to promote financial inclusion for MSMEs by moving from conventional assessment methods to leveraging customers’ digital footprints. By underwriting loans based on their digital transactions, this product opens up new credit opportunities for an underserved and excluded segment, empowering them to grow and thrive.”
Muthoot FinCorp ONE’s QR-code-based lending program marks a key step towards the adoption of Government of India’s upcoming initiative ––Unified Lending Interface (ULI). With this soon-to-be launched program, lenders will benefit from the simplicity of facilitating credit through ULI, while borrowers will enjoy a seamless and hassle-free loan process. This integration will further streamline the credit ecosystem, enhance customer experience, and accelerate a nationwide shift toward digital lending, paving the way for greater financial inclusion among small businesses.
