CreditAccess Grameen Limited (NSE: CREDITACC, BSE: 541770), India’s largest Non-Banking Financial Company-Micro Finance Institution (NBFC-MFI), has secured a USD 50 million commitment from the International Finance Corporation (IFC). This funding aims to strengthen the company’s asset liability management (ALM), enhance geographical diversification, and support underserved communities, particularly women engaged in agriculture and related sectors.
The investment from IFC will play a pivotal role in expanding financial access for microentrepreneurs, focusing primarily on women borrowers. Over the lifecycle of this project, CreditAccess Grameen (CA Grameen) aims to reach an additional 3 to 4 million women borrowers. This initiative comes in response to India’s substantial MSME financing gap, estimated at USD 333 billion, with micro and small enterprises accounting for 95% of this shortfall. By facilitating greater access to credit, the partnership seeks to empower microentrepreneurs and stimulate economic growth.
“We deeply value our enduring partnership with IFC, whose continued support has been instrumental in our growth journey,” said Mr. Nilesh Dalvi, Chief Financial Officer of CreditAccess Grameen. “With this USD 50 million commitment under the external commercial borrowing (ECB) route, we are moving towards our FY28 strategy of sourcing 25%-30% of funds from foreign sources while maintaining strong control over our average cost of borrowings.”
Ms. Wendy Werner, IFC Country Head for India and Maldives, highlighted the significance of the collaboration, stating, “Financial inclusion is a key driver of economic and social development, especially in the agriculture sector. Our partnership with CA Grameen aims to address barriers to accessing financial products and services, improve their usage, and enhance their quality. This investment will foster competitiveness within India’s financial sector, supporting CA Grameen’s long-term growth and bringing more individuals into the formal economy.”
CreditAccess Grameen’s commitment to responsible finance is evident in its adherence to the IFC Exclusion List and Client Protection Principles promoted by Cerise+ SPTF. The company’s customer-centric and employee-first approach has enabled it to navigate various economic cycles effectively, reinforcing its leadership in inclusive finance.
Operating across 422 districts in 16 states and one union territory, CA Grameen continues to focus on providing micro-loans to women in rural areas, driving inclusive growth and financial empowerment across India.