ADB Signs $100 Million Loan to Boost MSME Lending for Women in India

By: WE staff | Friday, 12 December 2025

• ADB inked a USD 100 million loan agreement with Five-Star Business Finance
• The amount borrowed is going to help in extending more MSME loans to women belonging to low-income groups in India

On Friday, the Asian Development Bank (ADB) announced the US$100 million loan agreement it has signed with Five-Star Business Finance Limited (FBFL) to provide more women from lower grouped income earners in India access to micro, small and medium enterprise (MSME) loans.

ADB will provide financial support to FBFL through a project to help FBFL increase its MSME loan portfolio for women borrowers. The loan proceeds will be used under an international social finance framework and will be audited externally by ADB assistance.

This also includes efforts from FBFL to increase gender responsive practices within the company, including engaging with customers, developing increased levels of digital financial literacy, and having an inclusive work environment.

The ADB Country Director for India, Mio Oka said that women from low-income segments are more likely to have financial barriers to becoming entrepreneurs because they often have no collateral, inconsistent income and low levels of financial literacy.

FBFL has a long history of providing financing to MSMEs in Tier 3 cities and beyond and serving underserved groups, including women borrowers. FBFL has over 700 branches across India and provides services to more than 400,000 borrowers.