Creditaccess Grameen Secures $50 Million IFC Loan to Empower Women Borrowers

Creditaccess Grameen has announced a $50 million external commercial borrowing deal with the International Finance Corporation. The funds aim to aid up to 4 million women borrowers engaged in agriculture. This initiative comes amid challenges in the microfinance sector, promoting financial diversification and competitive strengthening.

Creditaccess Grameen, India's largest NBFC-MFI, has secured a $50 million loan from the International Finance Corporation, part of the World Bank Group, using the ECB route.

The funds will enable the microlender to extend services to an additional 4 million women borrowers, particularly those in agriculture, amid challenges in the microfinance sector like low collections and high delinquencies.

With this financial boost, the company plans to enhance its asset liability management and maintain geographical diversification. Nilesh Dalvi, CFO of Creditaccess Grameen, highlighted their strategy to secure 25-30% of funds from foreign sources by FY28, while staying competitive in costs. IFC's Wendy Werner emphasized the potential for increased competitiveness in India's financial sector through this investment.