IFC Extends US$500 Million to HDFC Bank to Ramp Up Microloans to Underserved Women Borrowers in India.

Banking & Finance

Women, especially microloan borrowers in semi-urban and rural areas, will have increased access to finance with IFC financing of up to US$500 million to HDFC Bank—the largest private sector bank in India—aiming to support lending for income generation purposes, fostering financial inclusion and socio-economic growth in the country.The Bank, with a long-standing history of lending to women, 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.


      HDFC Bank emphasizes its commitment to empowering women through targeted lending to Self-Help Groups (SHGs) and Joint Liability Groups (JLGs), aiming to extend banking services to underbanked and unbanked populations.

      These financial entities collectively serve approximately 47 million clients with a combined gross loan portfolio of US$31.6 billion as of December 31, 2023.

      Non-banking financial entities, including microfinance institutions (MFIs) and small finance banks, play a significant role in lending to women for income generation, representing about 65.7% of total microfinance lending in India.

 

     


About HDFC

Sashidhar Jagdishan - MD and CEO
          ____________________________