L&T Finance Holdings Ltd. has partnered with the Japan International Cooperation Agency (JICA) to secure $125 million to support rural and semi-urban India by providing formal credit access to various segments of the population, including marginal farmers, women entrepreneurs, women borrowers, MSMEs, and two-wheeler loans.
This is the second phase of funding done by L&T Finance with an aim to address poverty in rural India, a country with 65 per cent of its population. The fund, sourced from the Asia Development Bank, aims to alleviate poverty, boost economic growth, and promote financial inclusion, despite the challenges faced by marginal farmers.
The female borrowers will be provided 40 per cent of the funds and the rest will be allocated to the farmers, MSMEs, and two-wheeler loans. According to the Chief Sustainability Officer and Company Secretary, Ms. Apurva Rathod, despite economic growth, rural communities face challenges in accessing financial services, with many marginal farmers lacking formal loans, disproportionately affecting women.
The partnership between the two respective firms will focus on women entrepreneurs' financial resources in order to expand their businesses, invest in new ventures, and enhance existing operations. The collaboration aims to empower women economically, promote business growth, offer skill enhancement through training programs, workshops, and mentorship along with ensuring gender equality in accessing financial services.
