International Journal of Commerce and Management Research

Authors
K Khasimpeera, Dr. M Sugunatha Reddy

Abstract
Microfinance, also known as microcredit, is a financial service that offers loans, savings and insurance to entrepreneurs and small business owners who don't have access to traditional sources of capital, like banks or investors. The goal of micro financing is to provide individuals with money to invest in themselves or their business. The Muthoot Pappachan Group, with a reputation that has been shaped over decades with high quality practices, total customer satisfaction and steady growth, spanning decades in the field of business. Microfinance is a broad category of services, which includes micro credit. Microcredit is only about provision of credit services to poor clients; only one of the aspects of microfinance, and the two are often confused. In many instances, people seeking help from microfinance organizations are first required to take a basic money-management class. Lessons cover understanding interest rates, the concept of cash flow, how financing agreements and savings accounts work, how to budget, and how to manage debt. In this paper we focused establish a healthy and profitable lending business through relationships with select MFIs and Investing in building deeper and concurrent monitoring and control mechanisms to enable healthy growth of the muthoot fincorp microfinance sector.