Asian Development Bank (ADB), a multilateral lending organisation, has approved $100 million (or $830 crore) for Shriram Finance Limited (SFL) to offer vehicle loans to female entrepreneurs.
According to a release from Shriram Finance, the $100 million External Commercial Borrowing (ECB) is a five-year loan that falls under the Social Finance framework of SFL and will be used to offer finance for the purchase of new and used vehicles across India.
Profits from ADB can be used to fund women entrepreneurs, assist underdeveloped regions of the nation, and improve the social and economic standing of underprivileged populations, it was stated. They can also be used to finance BS VI compliant automobiles and electric vehicles for commercial use.
In addition to the ADB loan, SFL has also been successful in raising $475 million through a 144A Bond from the foreign market in 2022 and $250 million from the US Development Finance Corporation, thus diversifying its funding profile and advancing its goals for financial inclusion.
Umesh Revankar, executive vice chairman of SFL, commented on the fundraiser by saying that the company will use the money to finance the purchase of cars and equipment in undeveloped new markets in order to create business prospects and jobs.
According to him, this would enable more rural and semi-urban groups to maximise their revenue and improve the quality of their lives.
