Muthoot Fincorp ONE Launches QR-Based Loans For Small Businesses

New Delhi, Dec 3 (KNN) In a significant step towards financial inclusion, Muthoot FinCorp ONE has introduced a lending initiative that enables small businesses to access loans based on their digital transaction histories. 

The new program allows micro, small, and medium enterprises (MSMEs) to secure loans up to Rs 5 lakh using QR-code transaction data, addressing a critical gap in traditional lending practices.

The initiative aligns with Finance Minister Nirmala Sitharaman's recent budget announcement, which called for a new credit assessment model that evaluates small businesses based on their digital footprints rather than traditional balance sheet analysis. 

According to International Finance Corporation data, India's nearly 60 million informal micro enterprises contribute substantially to the national economy, generating 31 per cent of GDP and employing approximately 13 crore people.

Chandan Khaitan, CEO, Muthoot FinCorp ONE, emphasised the program's transformative potential. 

"Our aim is to make credit accessible to informal micro enterprises that traditionally face barriers in accessing formal finance," Khaitan explained. 

The lending model features daily automatic repayments, eliminating manual effort and promoting financial discipline among small business owners.
Thomas John Muthoot, Chairman and Managing Director, Muthoot FinCorp Ltd, highlighted the initiative's broader significance. 

The program leverages technology and strategic partnerships to create a lending solution that is simple, scalable, and tailored to the daily cash flow needs of small business owners. 

Since its launch, the program has already supported more than 75,000 informal micro enterprises.

The lending approach addresses a substantial credit gap in the MSME sector, which has historically struggled to access formal financial services. 

By utilising digital payment platforms and QR-code transaction histories, Muthoot FinCorp ONE is helping to bridge this critical financial divide.

Looking forward, the program is positioned as a key step towards the Government of India's upcoming Unified Lending Interface (ULI) initiative. 

It promises to streamline the credit ecosystem, enhance customer experience, and accelerate the nationwide transition to digital lending, ultimately promoting greater financial inclusion for small businesses across the country.

(KNN Bureau)