Muthoot Microfin Debuts digital-first Suvidha Loan For Instant Disbursal In 30 Mins

One of the top microfinance organisations in India, Muthoot Microfin Limited, has introduced instant digital loan initiative with the 'Suvidha Loan' programme allows users to apply for a loan and receive an amount between INR 10,000 and INR 30,000 within 30 minutes.

The Mahila Mitra App, the company's comprehensive mobile application platform for customers, provides access to this service. The Mahila Mitra App is currently used by 13 lakh customers of the company to manage their loans and access digital services. In FY23, Muthoot Microfin stated that 34% of loan repayments were facilitated digitally and were rewarded with payback plans. Suvidha Loans have been established to give users access to digital services

Mr. Sadaf Sayeed, CEO, Muthoot Microfin said, "Muthoot Microfin has conceptualized Suvidha Loan to empower microfinance customers, strengthening our commitment towards digital inclusion of rural India. This enables customers to borrow at her discretion and convenience without being dependent on a loan officer or joint liability group. With the use of our in-house created 'Mahila Mitra' app and credit scorecard, together with integrated household level credit bureau, digital KYC, and penny drop verification, we can analyze a customer on 40 different parameters in a matter of minutes. We can decide on a loan within 15 minutes and disburse it in 30 minutes."

Mr. Udeesh Ullas, COO, Muthoot Microfin said, "With help of big data analytics, AI, and Machine learning we have developed a deep understanding on credit behavior of our customers. We can now make more accurate and quick data driven decisions on our loans. Suvidha loans will increase our customer retention and help us reach more people."

Customers' borrowing experience is flawless thanks to Suvidha Loan's usage of secure document processing mechanisms like virtual signatures, OTP verification, and geo-coordinate confirmation. There are many alternatives for loan repayment, including weekly or monthly installments, to meet the different needs and preferences of customers. From loan distribution to loan collection, the entire process will be paperless, digital.

In addition, Muthoot Microfin has been promoting its customers' adoption of digital financial services through a digital campaign named "Parivartan." The Muthoot Pappachan Group, one of India's top and fastest-growing non-banking financial companies-microfinance institutions (NBFC-MFI), features Muthoot Microfin Limited (MML). With an emphasis on rural areas of India, the microlender offers microloans to female entrepreneurs. As of March 31, 2023, MML's position in India has expanded; it now operates in 18 states, with 1172 branches, a portfolio of Rs. 9200 crore, and a borrower base of 27 lakh active women entrepreneurs.