Speedy, small loan market sees Muthoot Microfin make an entry

• The loan amount can range between ₹10,000 to ₹30,000.
  
• The entire loan process, including disbursement and collection, is conducted digitally through the app.
  
• In FY23, the company reported that 34% of loan repayments were conducted through digital channels.
  

Muthoot Microfin Limited on Monday launched a new service called 'Suvidha Loan' aimed at providing customers with instant access to funds. This service allows customers to apply for a loan amount ranging from ₹10,000 to ₹30,000, and receive the funds within 30 minutes of application.

The entire process is facilitated through the Mahila Mitra App, which is the company's mobile application platform designed for its customers. With the introduction of this service, Muthoot Microfin aims to empower its customers with quick and hassle-free access to much-needed funds.

Says Sadaf Sayeed, chief executive officer, Muthoot Microfin, “Muthoot Microfin has conceptualised 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.”

The Suvidha Loan incorporates secure document execution methods like virtual signatures, OTP verification, and geo-coordinate confirmation, ensuring a seamless process, the company says. Customers can choose flexible repayment options, including monthly or weekly instalments, to suit individual needs and preferences. The entire loan process, including disbursement and collection, is conducted digitally through the app, eliminating the need for paper-based transactions and minimising manual intervention.

Sayeed adds that with the use of the company’s Mahila Mitra app and credit scorecard, together with integrated household-level credit bureau, digital KYC (know-your-customer), and penny-drop verification, “we can analyse 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.”

At present, Muthoot Microfin has a customer base of 13 lakh individuals who use the Mahila Mitra App to manage their loans and access digital services. In FY23, the company reported that 34% of loan repayments were conducted through digital channels, which were encouraged through incentivised payback schemes. The introduction of Suvidha Loans aligns with the company's vision to empower customers by leveraging digital infrastructure and services, further enhancing their convenience and accessibility.

The Mahila Mitra app was launched in May 2020, to enable customers to instantly overview their loan details, and learn more about their transactions.

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