IFC has extended $500 million financing to HDFC Bank to ramp up microloans to underserved women borrowers in India. Women, especially microloan borrowers in semi-urban and rural areas, will have increased access to finance with IFC financing of up to $500 million to HDFC Bank,” IFC and the Bank said in a joint statement.
Through this funding, India’s largest private sector bank is seeking to support lending for income generation purposes, fostering financial inclusion and socio-economic growth, per the statement. The Bank will 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).
SLI is the Bank’s business line responsible for microfinance lending programs exclusively for women borrowers. IFC’s loan will further enable the Bank to grow its microcredit and microlending to women, especially allowing SHG and JLG borrowers to graduate to individual lending schemes, according to the statement.