{"id":13563,"date":"2022-06-27T11:26:43","date_gmt":"2022-06-27T11:26:43","guid":{"rendered":"http:\/\/muthoot.digitalfolkz.com\/?page_id=13563"},"modified":"2025-07-04T14:34:10","modified_gmt":"2025-07-04T09:04:10","slug":"micro-finance","status":"publish","type":"page","link":"https:\/\/www.muthoottumini.com\/ml\/micro-finance\/","title":{"rendered":"Micro Finance"},"content":{"rendered":"
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BACKING YOUR FINANCIAL NEEDS<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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The Microfinance division was launched by Muthoottu Mini in 2016 with the aim of empowering women by providing financial independence. Using the Joint Liability Group (JLG) model, where members guarantee one another’s loans, we offer loans to support women’s entrepreneurial activity. In microfinance, individuals and small businesses that lack access to conventional banking and other services are targeted. Microfinance services are designed to reach excluded customers, usually lower segments of the population, possibly socially marginalized, or geographically more isolated, so that they can become self-sufficient. Microfinance aims to help individuals, low income households, small businesses and start-ups prosper\u00a0as well as rebuild during times of crisis. People from economically backward communities can\u00a0<\/span>benefit from microfinance since it is easy to use and can make a positive difference in their\u00a0<\/span>lives. There are currently <\/span>86\u00a0branches all over Kerala with Assets Under\u00a0Management<\/a> (AUM)\u00a0over 150 crores with 40,000\u00a0<\/span>live clients. So far more than 1,00,000 loans were distributed to the women entrepreneurs since inception.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Collateral Free Loans<\/h1>\r\n\t\t\t\t \t\t\t\t\t\t \t\t\r\n\t\t\t\t \t<\/div>\r\n\t\t\t \t\t\r\n\r\n\t\t\t \t\t\r\n\r\n\r\n\r\n\t\t\t \t\t \t \t\t\t \t \t\r\n\r\n\r\n\r\n\t\t\t <\/div>\r\n\t\t\t<\/div>\r\n\t\t<\/div>\t\r\n\t\t\r\n\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
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On Joint Liability<\/h2>\r\n\t\t\t\t \t\t\t\t\t\t \t\t\r\n\t\t\t\t \t<\/div>\r\n\t\t\t \t\t\r\n\r\n\t\t\t \t\t\r\n\r\n\r\n\r\n\t\t\t \t\t \t \t\t\t \t \t\r\n\r\n\r\n\r\n\t\t\t <\/div>\r\n\t\t\t<\/div>\r\n\t\t<\/div>\t\r\n\t\t\r\n\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
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To Empower Women<\/h2>\r\n\t\t\t\t \t\t\t\t\t\t \t\t\r\n\t\t\t\t \t<\/div>\r\n\t\t\t \t\t\r\n\r\n\t\t\t \t\t\r\n\r\n\r\n\r\n\t\t\t \t\t \t \t\t\t \t \t\r\n\r\n\r\n\r\n\t\t\t <\/div>\r\n\t\t\t<\/div>\r\n\t\t<\/div>\t\r\n\t\t\r\n\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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The product details are as given below<\/span><\/p>\n

1. Microfinance loans are collateral free loans given to female clients having annual household income up to \u20b93,00,000 on the basis of joint liability. Loans are repayable in equated instalments over a period of time . <\/span><\/p>\n

2. Loans are given to groups of ladies for declared legal end use, like business expansion, working capital needs, purchasing raw material, purchasing animals etc.<\/span><\/p>\n

3. The loan amounts are ranging from Rs.10,000 to Rs.1,20,000\/- based on eligibility and repayment capacity.<\/span><\/p>\n

4. Higher loan amounts for subsequent cycles are given based on repayment behaviour.<\/span><\/p>\n

5. The loan tenure can be from 1 year to 3 years based on the loan amounts.<\/span><\/p>\n

6. The clients will have weekly\/fortnightly \/monthly meetings in a designated place called centre where they pay back the loans to the field staff of the company.<\/span><\/p>\n

7. All process and procedures are formulated based on RBI\u2019s guidelines issued from time to time.<\/span><\/p>\n

8. Applicable Interest Rate<\/p>\n\n\n\n
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 Minimum Rate \u2013 26% p.a<\/p>\n<\/td>\n

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 Maximum Rate \u2013 30% p.a<\/p>\n<\/td>\n

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 Average Rate \u2013 28% p.a<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Gradation of Interest Rates<\/strong>
The rate of interest is arrived at based on a comprehensive approach to gradation of risk based on demography, the profile, the cost of funds, margin, risk premium, external ratings, cash flow, track record, nature and value of collateral if any, loan to value, future potential, tenure, competition, industry trends, guarantees and credit risk. The rate of interest applicable to loan may therefore vary from one customer to another and may also vary for the same customer when a fresh loan is extended over a period of time, taking into consideration the combination of the above parameters, the market information, the field report and the information provided by the borrower.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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FAQs<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t1. Does Muthoottu Mini provide Microfinance services?<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t

Ans:<\/strong>\u00a0Muthoottu Mini Financiers<\/a> provide microfinance services through the Joint Liability Group (JLG) Model, whereby group members guarantee each other’s loans. The concept of microfinance encompasses providing small loans to underprivileged individuals.\u00a0<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t2. What is meant by Microfinance?<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t

Ans:<\/strong> Microfinance is a financial service that targets individuals and small businesses who do not have access to conventional banking services.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t3.What is the main objective of Microfinance?<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t

The objective of microfinance is similar to that of microcredit; its goal is to provide financial services to help encourage entrepreneurs in impoverished nations to act on their ideas and obtain the financial tools available to do so and to eventually become self-sustainable.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t4. Microfinance Loan Eligibility Criteria<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t

Loans are given to groups of ladies for declared legal end use, like business expansion, working capital needs, purchasing raw material, purchasing animals etc.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"

BACKING YOUR FINANCIAL NEEDS The Microfinance division was launched by Muthoottu Mini in 2016 with the aim of empowering women by providing financial independence. Using the Joint Liability Group (JLG) model, where members guarantee one another’s loans, we offer loans to support women’s entrepreneurial activity. In microfinance, individuals and small businesses that lack access to…<\/p>","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-13563","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/www.muthoottumini.com\/ml\/wp-json\/wp\/v2\/pages\/13563","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.muthoottumini.com\/ml\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.muthoottumini.com\/ml\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.muthoottumini.com\/ml\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.muthoottumini.com\/ml\/wp-json\/wp\/v2\/comments?post=13563"}],"version-history":[{"count":0,"href":"https:\/\/www.muthoottumini.com\/ml\/wp-json\/wp\/v2\/pages\/13563\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.muthoottumini.com\/ml\/wp-json\/wp\/v2\/media?parent=13563"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}