ADB approves $100m loan to boost financial access for women entrepreneurs in India
MANILA: The Asian Development Bank (ADB) on Friday said it has signed a $100 million loan agreement with Five-Star Business Finance (FBFL) to expand access to micro, small and medium-sized enterprises (MSME) business loans for women borrowers from lower-income groups in India.
The bank said the loan will be used to fund the project, which aims to increase the company's MSME loan portfolio for women borrowers.
The funds will be deployed under a social finance framework aligned with international standards, which will be externally verified through ADB technical assistance.
It will also support FBFL in embedding gender-responsive practices within its operations, including tailored customer engagement, digital financial literacy programmes, and inclusive workplace training.
"Women entrepreneurs in India, particularly those from lower-income segments, face systemic barriers such as lack of collateral, informal income sources, and limited financial literacy," said ADB country director for India Mio Oka.
FBFL finances MSMEs in tier-3 cities and beyond with a track record of serving underserved segments, including supporting women borrowers. The company operates through more than 700 branches across India and serves over 400,000 borrowers.
BY RSS/Xinhua
