US DFC lends USD 35 million to Credit Access Grameen in India to Empower Women Entrepreneurs

By: WE Staff | Thursday, 20 October 2022

In order to provide 5 lakh female entrepreneurs with access to credit, the US government's Development Finance Corporation (DFC) and the Indian microfinance organisation CreditAccess Grameen (CAG) have struck a 35 million dollar loan agreement.

DFC's chief executive officer Scott Nathan, who is visiting India, performed the formal signing.

The largest NBFC-MFI in India, CreditAccess, provides services to almost 4 million women. The US corporation's loan will help Creditaccess Grameen's microlending portfolio to grow.

"Over the course of the loan, it is anticipated that DFC's funding will enable CreditAccess to assist an extra 500,000 needy women.

CreditAccess is also the first organisation to join forces with DFC in a new programme that aims to enhance financial inclusion for underserved women and will raise the number of women in leadership positions in the microfinance industry, according to a statement released by DFC on Tuesday.

Additionally, a biomass supply chain management company called Punjab Renewable Energy Systems Private Limited (PRESPL) and a US corporation have inked a contract for USD 10 million in loan guarantees.

According to DFC, the investment would support the development of seven biomass briquetting units as well as PRESPL's working capital requirements, helping to fulfil India's expanding energy demands.

Nathan spoke with representatives of the corporate sector during his visit to Mumbai on Tuesday to advance strategic social and economic development in India and the Indo-Pacific region.

Harsha Bangari, managing director of the India Export-Import Bank (EXIM Bank), was introduced to Nathan. The two talked about the value of maintaining the Quad cooperation between DFC and EXIM Bank as well as their present and prospective partnerships with other Quad development banks in vital industries including clean energy, supply chains, and digital connectivity.

Nathan also met with Sujoy Ghosh, First Solar, Inc.'s India Country Head. With a projected annual capacity of 3.3 gigawatts, DFC finance supports First Solar's vertically integrated photovoltaic (PV) solar module manufacturing facility in Tamil Nadu, India. The facility is enhancing solar supply chains for projects utilising renewable energy in the area.

DFC collaborates with the business sector to finance responses to the most pressing problems now plaguing the developing world.

It makes investments in a variety of industries, such as energy, healthcare, vital infrastructure, and technology. To support the development of new markets and the creation of jobs, DFC also offers financing to small firms and female entrepreneurs.