Multilateral funding agency Asian Development Bank (ADB) has sanctioned USD 100 million (about Rs 830 crore) to Shriram Finance Limited (SFL) to offer vehicle loans to women entrepreneurs.
Shriram Finance said in a statement that, “External Commercial Borrowing (ECB) is a five-year loan and is under SFL's Social Finance framework to provide credit towards the purchase of new and used vehicles throughout India.”
The money received from the ADB can be used to finance electric and BS VI compliant vehicles for commercial usage, finance women entrepreneurs, assist underdeveloped regions of the nation, and improve the social and economic standing of underserved areas, it was said.
Along with the ADB loan, SFL has also been successful in securing USD 250 million from the US Development Finance Corporation and USD 475 million through a 144A Bond from the international market in 2022, further diversifying its funding profile and advancing its goals for financial inclusion.
Commenting on the fundraise, SFL executive vice chairman Umesh Revankar said the company will finance for buying of vehicles and equipment in new and untapped markets to provide business opportunities and generate employment.
This would empower more communities in semi-urban and rural areas to optimise their income and to have a better quality of life, he said.