Godrej Capital, UP Government Tie Up To Boost MSME Growth

Godrej Capital, the financial services arm of the Godrej Industries Group, through its subsidiary Godrej Finance Limited signed a strategic Memorandum of Understanding (MoU) with the Government of Uttar Pradesh to strengthen the Micro, Small and Medium Enterprises (MSME) ecosystem across Uttar Pradesh. The partnership is aimed at improving access to timely credit, enabling enterprise modernisation, and supporting economic growth across one of India’s fastest-growing states.

Under the MoU, Godrej Finance will collaborate with the state government to review and potentially extend credit support to 500 high-potential ‘champion’ MSMEs across Uttar Pradesh. The initiative is expected to unlock growth opportunities for small businesses, support job creation, and strengthen local economies across districts.

The collaboration aligns with Uttar Pradesh’s MSME Policy, with an emphasis on ease of doing business and enhanced access to institutional finance. As part of the partnership, the two entities will explore a tailored financial product under the Chief Minister YUVA Scheme, enabling young entrepreneurs to scale faster. MSMEs under the One District One Product (ODOP) initiative will receive specially enabled credit support to strengthen traditional industries, artisans, and local manufacturing clusters.

Speaking on the partnership, Pankaj Gupta, MD & CEO, Godrej Finance, said, “Uttar Pradesh has a strong and diverse MSME base that plays a vital role in employment generation and economic growth. Through this partnership, we aim to combine our digital-first lending capabilities with the state’s MSME vision to support high-potential MSMEs, women-led businesses, and young entrepreneurs. Our focus is turning timely access to credit into measurable growth, so that small businesses across Uttar Pradesh can grow with speed, scale, and confidence.”

A key pillar of the MoU is its emphasis on women-led enterprises. The Government of Uttar Pradesh will explore avenues to provide credit support through Aarohi Loans, offering financial solutions specially designed for women by Godrej Capital. These curated loan facilities are designed to empower women-led enterprises and promote inclusive participation in the formal credit ecosystem.

Godrej Finance will offer MSMEs fast, digital-first credit solutions, sanctioning unsecured loans within three days and secured loans within seven days. A seamless, fully digital disbursal process will ensure transparency, speed, and convenience, significantly improving access to timely financing.

Beyond lending, MSMEs across Uttar Pradesh will gain access to Godrej Nirman, an open platform offering curated partner solutions, service providers, and exclusive offers across key business needs such as compliance, technology, procurement, and growth enablement, helping enterprises holistically to scale more efficiently.

To reach MSMEs at scale, the Government of Uttar Pradesh will engage industrial clusters, trade associations, and relevant industry bodies. The MoU also explores low-cost funding options and applicable interest subsidy schemes to help reduce the cost of capital for eligible borrowers. 

MSMEs operating within emerging industrial corridors across the state will benefit from improved access to credit lines, supporting Uttar Pradesh’s long-term, infrastructure-led development vision. A Joint Work Committee comprising representatives from both parties will oversee coordination and ensure structured implementation of initiatives under the MoU.