Muthoot Microfin has received a CARE Edge ESG rating. What are the key ESG initiatives that have contributed to this and how are you measuring their on- ground impact?
Muthoot Microfin’s recognition as a top-tier CARE Edge ESG Rating (ESG 1) for ‘leadership’ and an ESG score of 72.2 – well above the industry median of 56.8 – marks a milestone in the company’s sustainability journey. The rating validates our efforts to balance impact, governance, and scale. A central part of our impact model is the Mahila Mitra e-clinic platform, through which we facilitated almost 1.4 million consultations through our 718 e-clinics in remote areas as of 2024-25 end. Over 94 per cent of our portfolio supports rural women entrepreneurs, contributing to gender equity and income resilience. In 2024-25, we disbursed Rs240.5 crore in sanitation loans and Rs27.5 crore in solar product loans and introduced solar UPS in 50 branches.
A board-level ESG committee and a transparency score of 83.1 reflect our governance maturity. Our impact measurement spans grievance resolution (95 per cent+), ESG board reviews and full BRSR compliance. Additionally, we have contributed to building climate resilience by offering NatCat insurance to nearly 120,000 beneficiaries and received external validation through Gold Client Protection Certification (M-CRIL). We have also been recognised as a ‘Great Place to Work’ six times, and ranks among India’s top 50 in health and wellness.
With a strong rural footprint and women-centric lending model, what are some of the operational strategies that have helped Muthoot Microfin scale efficiently across India?
Our ability to scale across 21 states and 1,727 locations rests on a technology-led, client-focused approach. Rather than rely on a one-size-fits-all model, we prioritise household-level needs through responsive product design, field-level digitisation and a commitment to continuous client engagement. Our operational framework leverages digital repayment infrastructure, mobile-based self-service apps, and real-time grievance channels. Over 1.8 million clients use our Mahila Mitra App, and Rs2,297 crore in repayments were made digitally in 2024-25 alone. We continuously invest in field capacity, client awareness, and internal controls – ensuring operational discipline even as we grow.
As the microfinance industry evolves, how is Muthoot Microfin positioning itself for continued growth and innovation in the coming years?
We are pursuing a strategy rooted in product diversification, digital innovation, and prudent expansion. Our growing portfolio includes sanitation loans, solar energy products, and MSME loans – serving both income and household needs. We have introduced secured products like MSGB loans for enterprise clients. Each new product we launch must either improve a household’s resilience or enhance its productive capacity. We do not diversify for the sake of volume. Our clients’ quality of life must rise as their credit access improves.
On the digital front, AI-enabled credit scoring, geo-tagging, and real-time dashboards enhance decision-making and underwriting efficiency. Over 18 lakh clients now use our Mahila Mitra App, contributing to more than 15 million digital transactions in 2024-25. The biometric e-KYC integration through the Aadhaar ecosystem has also reduced onboarding time from 3 days to 30 minutes. Financially, we are strongly positioned with R697 crore in liquidity and a capital adequacy ratio of 27.9 per cent. Additionally, we are exploring co-lending structures, fintech collaborations and BC partnerships to extend our reach. Our CareEdge ESG score, Board-led oversight and institutional governance provide a strong base to scale responsibly while enhancing impact and inclusion.
We are pursuing a strategy rooted in product diversification, digital innovation, and prudent expansion
What are the key trends today, particularly in terms of borrower behaviour, credit demand, and digital adoption?
The year 2024-25 highlighted major shifts in borrower behaviour, demand patterns, and digital uptake. Despite sector-wide moderation, demand for productive credit remained strong – especially among women-led households. Muthoot Microfin disbursed Rs9,719 crore in 2024-25, and borrowers increasingly seek timely, larger and more transparent credit. Over 25 per cent of repayments are now made digitally via UPI and QR platforms.
What’s your outlook for the Indian microfinance industry in 2025-26?
The year 2025-26 offers a stable runway for responsible growth. Following 2024-25’s provisioning cycle and operating recalibrations, the sector is set to grow at 10–12 per cent in AUM, supported by rising rural demand and improved borrower discipline. Muthoot Microfin is well-positioned, with a Rs12,357 crore loan book, Rs697 crore in liquidity and one of the highest capital adequacy ratios in the sector at 27.9 per cent.