USAID, DFC partner Kotak to finance women entrepreneurs, MSMEs
Initiative likely to benefit more than 30,000 individual women borrowers and 7,500 MSMEs in India
Hyderabad: The United States Agency for International Development (USAID) and the US International Development Finance Corporation (DFC) have jointly sponsored a $50 million (about Rs 370 crore) loan portfolio guaranty to Kotak Mahindra Bank (KMBL) to support increased access to finance for women borrowers, and micro, small and medium enterprises (MSMEs) across India.
This partnership will help MSMEs that have been impacted by Covid-19 access loans to rebuild and scale their businesses. Under this programme, Kotak Mahindra Bank will provide loans for on-lending to Non-Banking Financial Companies (NBFCs) operating in the MSME and Microfinance (MFI) space.
This will help provide credit to borrowers and will promote sustained and inclusive economic growth. At least 50 per cent of the loans are earmarked to be lent to women-led or women-managed MSMEs, or MSMEs that employ a certain percentage of women or that produce a good or service that disproportionately benefits women. It is likely to benefit more than 30,000 individual women borrowers and 7,500 MSME firms.
D Kannan, group president – Commercial Banking, Kotak Mahindra Bank said, “Kotak Mahindra Bank is committed to the cause of fostering financial inclusion and making credit available from formal sources to MSMEs and women entrepreneurs belonging to lower socio-economic segments. These two segments have been impacted by the ongoing pandemic, and this programme will provide credit and help women entrepreneurs and MSMEs to not only scale up their businesses, but also generate employment.”
Veena Reddy, USAID/India Mission director said, “At USAID, we believe gender equality and women’s empowerment are not just a part of development but are the core of development. Women in India have been disproportionately impacted by the Covid-19 pandemic, facing economic hardships that directly impact the livelihoods of their families and communities.”
“Empowering women-owned MSMEs is critical to fostering inclusive growth in India, and will also help bolster India’s post-pandemic recovery,” said Algene Sajery, VP, Office of External Affairs and head of DFC’s Global Gender Equity Initiatives.
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