OPIC, IndusInd Bank sign pact for $225-mn MSME loan facility

OPIC is a self-sustaining US govt agency that helps American businesses invest in emerging markets

The Overseas Private Investment Corporation (OPIC) and IndusInd Bank today executed a finance agreement for a $225 million loan supporting the expansion of the bank's MSME lending programmes across India.

OPIC is a self-sustaining US government agency that helps American businesses invest in emerging markets.

At least 25% of the proposed facility will support women entrepreneurs and reach previously unbanked populations, the bank said in a statement.

"Fostering access to finance opportunities for women entrepreneurs and MSMEs is important for increasing higher economic output throughout India," said Acting OPIC President and CEO Dev Jagadesan.

This eight-year loan is part of the agency's commitment to supporting $1 billion in loans to underserved small and medium enterprises in India.

Romesh Sobti, MD and CEO of IndusInd Bank said the agreement with OPIC will help the bank to further enhance its MSME lending franchise.

Wells Fargo Bank also signed a $20 million finance agreement supporting IndusInd Bank's MSME lending.