Muthoot Microfin Ltd has raised ₹250 crore through the allotment of listed, rated, secured and redeemable non-convertible debentures (NCDs) on a private placement basis.
The company has allotted 250,000 NCDs with a face value of ₹10,000 each. The securities have a tenure of 24 months and carry a coupon rate of 9.25 per cent a year, payable monthly.
Muthoot Microfin said the fund raise is part of its strategy to strengthen its funding profile, diversify its liability mix and lower its overall borrowing costs.
“The ₹250 crore fund raise is an important step towards strengthening our funding profile and maintaining access to diversified sources of capital,” said Sadaf Sayeed, CEO, Muthoot Microfin.
Sayeed said the company’s cost of funds fell by 75 basis points in FY26. He added that the recent upgrade in the company’s credit rating to CRISIL AA-/Stable would further improve its ability to raise funds at competitive rates.
“Over the medium term, this will also support our focus on strengthening margins while continuing to grow responsibly and serve more customers across our markets,” he added.
The NCDs are secured by a first-ranking, exclusive charge over the company’s receivables.
As of June 30, 2026, Muthoot Microfin had 3.25 million active customers across 1,671 branches in 21 states and 392 districts. Its gross loan portfolio stood at ₹14,457.2 crore.
The company is part of the Muthoot Pappachan Group and focuses on microfinance loans, including income-generating loans for women running small businesses.