Muthoot Microfin announces foray in Telangana

KOLKATA: Muthoot Microfin has announced its entry into Telangana while it is in the process of foraying into Andhra Pradesh by June. Pure microfinance lenders are slowly returning to these states after the state high court ruled that entities regulated by the Reserve Bank of India cannot come under state law in terms of doing business. In 2010, Andhra Pradesh enacted a law to prohibit microfinance companies from doing business in the state.

The Kerala-based non-banking finance company-microfinance institution (NBFC-MFI) is planning to open four branches in Telangana this month.

“In line with our growth strategy of increasing our distribution network and acquiring new customers, we will further expand our operations in Telangana. Soon, we will be entering Andhra Pradesh as well,” chief executive Sadaf Sayeed said.

“We maintain a rigorous market analysis approach, ensuring thorough assessments of new geographies,” Sayeed added.

The branches in Telengana will be in Bhuvanagiri, Jangaon, Hanmakonda and Parakala.

Muthoot Microfin, a part of Muthoot Pappachan Group, provides financial assistance through income-generating microloans to women engaged in small businesses such as tailoring, vegetable vending and running tea-shop, among others. The lender has 3.28 million active customers served through 1,424 branches spread across 18 states at present.