In a bid to create finance options for low-income women borrowers living in the rural areas, the Asian Development Bank (ADB) has signed a loan amount up to $200 million with IndusInd Bank in a seven-year loan project. It will largely aid IndusInd bank in its microfinance activities.
At least 95 percent of ADB funds for the project will be used to provide loans to women borrowers and close to 70 percent of the number of loans will be used for less developed States.
According to Romesh Sobti, Managing Director and Chief Executive Officer, IndusInd Bank, the significant agreement with ADB will help IndusInd Bank “to further enhance its inclusive banking franchise and extend finance to women borrowers in less developed states of India”.
It will provide “impetus to the bank’s financial inclusion and corporate social responsibility agenda”, he added.
The loan aims to reach an additional 200,000 low-income members by 2020, according to a statement of the ADB.
A capacity-building technical assistance of $1 million is anticipated to be a part of the package. It will support IndusInd Bank’s efforts to promote financial literacy for women borrowers. This is also expected to help in establishing a digitised process leading to product development initiatives.