Muthoot Microfin sourced 100 per cent of its inputs locally in FY 2025-26, with 78 per cent coming from Micro, Small, and Medium Enterprises (MSMEs) and small producers, according to the company's Business Responsibility and Sustainability Report (BRSR) 2026.  

The report said the company's customer base largely comprises women from low-income households in rural and semi-urban India. With annual family incomes of up to Rs 3 lakh, many earn a living through small businesses such as retail, tailoring, vending and livestock rearing.

A large number of the borrowers have never used formal credit before. According to the company, it offers loans through two different models: individual loans for loyal clients with a good repayment history and Joint Liability groupings, which are unofficial groupings of eight to forty-five people who guarantee each other's debts.

According to the study, the company employed a total of 15,735 people by the end of the year. Just 7.6% of the 11,018 permanent employees were female (837 women and 10,181 men). Women made up 11.38% of the 4,717 non-permanent employees, a somewhat better share. At the top level, women occupied one of four important management positions (25%) and two out of ten board seats (20%). Employee turnover also increased dramatically. Permanent staff left the company at a rate of 43.25% this year, compared to 39.39% last year and 34.05% the previous year. Men had a marginally higher turnover rate (43.41%) than women (40.85%) among those who departed this year.

As a financial services company, Muthoot Microfin doesn't have manufacturing emissions to report, but it does track energy use. Total consumption came to 62,073.94 GJ, of which only 980.06 GJ — less than 2% — came from renewable sources. Energy intensity worked out to 26.07 GJ per crore of turnover.

The company's policies were reviewed externally by CareEdge Advisory to ensure they hold up against the nine NGRBC principles. On the compliance side, it paid ₹40.08 lakh in penal damages and interest to the EPFO under Sections 14B and 7Q of the EPF Act, and didn't contest the action. No conflict-of-interest complaints or bribery/corruption cases involving directors or KMPs were reported.