Digital footprint-based lending programme for MSMEs launched by Muthoot FinCorp ONE

Muthoot FinCorp ONE, a strategic business unit (SBU) and the digital platform of Muthoot FinCorp Ltd. (MFL), has announced the launch of 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 a 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 demonstrating strong cash flows.

Muthoot FinCorp ONE also helps them grow as their loan repayment is simplified through automated daily deductions/repayments, thereby providing financial flexibility. Through strategic partnerships with India’s digital payment platforms, this lending program will combine the benefits of data-driven credit assessment, an end-to-end digital journey, and automated repayment options for MSMEs nationwide.

Chandan Khaitan, CEO of Muthoot FinCorp ONE, shared, “India has roughly 60 million informal micro enterprises (IMEs). It is one of the largest employment creators in the country and contributes significantly to the country’s GDP. A QR-code-based lending program aims 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.”

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 step towards the adoption of the 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.