HYDERABAD: Godrej Capital, the financial services arm of the Godrej Industries Group, has signed a memorandum of understanding (MoU) with the Government of Telangana to boost the growth and development of Micro, Small, and Medium Enterprises (MSMEs) across the state. The collaboration aims to improve access to credit and business opportunities for MSMEs, according to an official release on Thursday.

Under the MoU, the Government of Telangana and Godrej will work together to drive large-scale MSME credit penetration throughout the state. The partnership is designed to strengthen the MSME ecosystem by enabling better access to formal credit, particularly for underserved and first-time borrowers. The initiative aligns with the state’s vision of inclusive, innovation-led growth, focusing on digital-first lending solutions tailored to the unique needs of MSMEs.

Godrej Capital’s women-focused initiative, Aarohi, will place special emphasis on supporting women entrepreneurs. This collaboration seeks to bridge the credit gap, foster entrepreneurship, and accelerate economic growth across emerging business hubs in Telangana.

Telangana is recognized as one of India’s fastest-growing states, characterized by its dynamic business ecosystem and strong commitment to MSME development. This commitment is further reinforced by the MSME Policy 2024, which emphasizes credit access, digital adoption, and infrastructure support.

Manish Shah, MD & CEO of Godrej Capital, stated, "We are honored to partner with the Government of Telangana, which has demonstrated remarkable commitment to building a thriving MSME ecosystem. This collaboration is a strong step towards empowering the MSME ecosystem, especially women-led enterprises. Telangana remains a key priority market for us to empower and enable growth-led avenues for small-scale businesses. With our tech-enabled lending and quick approvals, we aim to unlock new growth opportunities for MSMEs across Telangana, especially women-led businesses.”

Dr. Jayesh Ranjan, Special Chief Secretary, Industries & Commerce Department, added, “We are pleased to collaborate with Godrej Finance and Godrej Housing Finance, both subsidiaries of Godrej Capital, for providing innovative, digital-first lending solutions and tailored financial products to our local MSMEs, especially women entrepreneurs. Our government through the recently launched MSME Policy has committed to exploring such partnerships with financial institutions for increasing access to credit for the underserved MSMEs, and this MoU is a step in that direction.”

Godrej Capital, through its subsidiaries, offers a diverse suite of loan products to meet the varying needs of MSMEs and individual borrowers. These offerings include loan against property, smaller-ticket Udyog loan against property, and unsecured business loans.