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ADB and Shriram Finance Ink $150 Million Loan Deal to Boost MSME and EV Financing in India.

Banking & Finance | Dated: 27 Mar 2025

In March 2025, Manila (Philippines)-based Asian Development Bank (ADB) and Chennai (Tamil Nadu, TN)-based Shriram Finance Limited (SFL) (formerly Shriram Transport Finance Company, STFC), one of India’s largest Non-Banking Financial Companies (NBFCs), signed a $150 million loan agreement to enhance financial access for Micro, Small, and Medium Enterprises (MSMEs) in India.

🎯 Key Highlights:

  • - The funding will support business loans and financing for electric vehicles (EVs) and low-emission commercial vehicles, with a special emphasis on women-owned MSMEs and businesses in economically backward states.
  • - This loan will play a crucial role in bridging the financial gap by strengthening Shriram Finance’s capacity to provide tailored financial solutions to MSMEs, particularly in rural and semi-urban regions.

💡 Other Important Facts:

  • (i) The $150 million loan is part of a $306 million financing package led by ADB, which includes $150 million co-financing from Japan International Cooperation Agency (JICA), Tokyo (Japan). Additionally, ₹500 million ($5.80 million) has been contributed by Export-Import Bank of India (EXIM Bank), Mumbai (Maharashtra).
  • (ii) The loan will support MSMEs, which contribute 30% of India's GDP and provide employment to 123 million people. This financial aid aims to enhance credit access, particularly in rural and semi-urban areas, empowering small businesses and entrepreneurs.
  • (iii) Furthermore, the funding will boost EV adoption in line with India's EV30@30 initiative, which targets 30% electric vehicle sales by 2030. It will also help reduce air pollution by financing Bharat Stage-VI (BS-VI) compliant low-emission vehicles, promoting sustainable and eco-friendly transportation.

📚 Test Your Knowledge:

Recently, which international financial institution signed a $150 million loan agreement with Shriram Finance to support MSME and EV financing in India?

Correct Answer: ADB

🚀 Quick Recap:

About Shriram Finance Limited (SFL)

  • MD & CEO : Y.S. Chakravarti
  • Headquarters : Chennai, Tamil Nadu (TN)