IndusInd Bank obtains Rs 1,243 cr from DFC to provide micro-loans to women
IndusInd Bank on Friday said it had secured a loan of over Rs 1,243 crore from the United States’ International Development Finance Corporation (DFC) to expand the bank’s microfinance lending to women in selected states.
IndusInd Bank has signed a letter of commitment with the United States International Development Finance Corporation for a loan worth $150 million, IndusInd Bank said in a statement.
The private sector lender plans to use the proceeds to expand its microfinance loans to women borrowers in rural communities in Jharkhand, Uttar Pradesh and Bihar.
The bank said it aims to improve access to finance for women borrowers under this program. It will also help improve the livelihoods of these women and their families, IndusInd Bank said.
This project advances DFC and the bank’s commitment to economically empowering female customers.
Affirming its commitment to financial inclusion and making credit available to large swaths of the unbanked and underbanked in the country, Sumant Kathpalia, Managing Director and Chief Executive Officer of IndusInd Bank, said that this program aligns with the bank’s philosophy.
“It also marks a significant milestone for the bank and shows global investors’ continued confidence in the bank’s focus on sustainable growth,” Kathpalia said.
The lender acquired Bharat Financial Inclusion (BFIL) in 2019 for microfinance lending.
These customers constitute an important segment of the Indian economy, but are often constrained by the lack of access to capital, he added.