MML Partners with SBI to Launch Loan Disbursement Program for Supporting Rural Entrepreneurs.
Banking & Finance
Kochi (Kerala)-based Muthoot Microfin Limited (MML), a microfinance institution, has commenced disbursing loans through its co-lending partnership with the State Bank of India (SBI), India's largest commercial bank, headquartered in Mumbai, Maharashtra.
- This initiative aims to support rural entrepreneurs, enhance financial inclusion, and promote self-sufficiency in both rural and semi-urban areas.
- Under the collaboration, SBI has approved a total loan limit of Rs 500 crore, which will be disbursed in installments of Rs 100 crore.
- Loans ranging from Rs 50,000 to Rs 3 lakh will be provided to eligible customers, with a primary focus on members of Joint Liability Groups (JLGs) involved in agricultural and allied activities, as well as other income-generating initiatives.
Main Points:- (i) By collaborating with SBI, MML aims to offer loans at lower interest rates, making them more accessible and affordable for borrowers, while planning to expand its co-lending initiative nationwide from its current operations in 20 states and 369 districts across India.
(ii) In Q2 of Financial Year 2024-25 (FY25), MML's net profit (NP) dropped 44% to Rs 61.6 crore, down from Rs 110 crore in the same period last year, due to challenges in the microfinance sector and higher employee costs.
(iii) The gross non-performing assets (NPA) ratio increased to 2.7% at the end of September 2024, up from 2.3% during the same period last year.
About State Bank of India (SBI)
Chairman : Challa Sreenivasulu (CS) Setty
Headquarter : Mumbai
____________________________
