International Finance Corporation (IFC) has provided $500 million loan to HDFC Bank for extending microloans to “underserved women” in rural and semi-urban India.
HDFC Bank said it would use IFC’s financing for on-lending as microloans to self-help groups (SHGs) and joint liability groups (JLGs) enrolled in the Sustainable Livelihoods Initiative (SLI).
“We have been empowering women especially by targeted lending to self-help groups (SHGs) and joint liability groups (JLGs), which further helps take banking to the underbanked and unbanked. This longer duration credit facility from IFC will further boost these efforts,” Arup Rakshit, Group Head, Treasury, HDFC Bank said in a statement.
“Access to financial services is key to empowering women and strengthening the economy. IFC aims to promote greater inclusiveness of underserved women borrowers by showing the viability of scaling up microlending to this segment,” said Imad Fakhoury, IFC’s Regional Director for South Asia.
