The Overseas Private Investment Corporation (OPIC) and IndusInd Bank on Friday executed a finance agreement for a USD 225 million loan in support of MSME lending programs across India.
The agreement will facilitate at least 25 percent of the proposed facility to support women entrepreneurs and reach previously unbanked populations.
IndusInd Bank, which reaches MSMEs across broad and diverse industries will help the eight-year loan to supporting USD one billion in loans to underserved small and medium enterprises in India.
MSMEs are an important segment of the Indian economy, but are often constrained by a lack of access to capital. This OPIC loan will support IndusInd Bank in increasing its MSME lending.
"Fostering access to finance opportunities for women entrepreneurs and MSMEs is important for increasing higher economic output throughout India," said Acting OPIC President and Chief Executive Officer, Dev Jagadesan.
He added that OPIC recognizes the positive impact supporting women entrepreneurs can have in a community.
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"We are proud to partner with IndusInd Bank to expand access to critical financial services," added Jagadesan.
"This agreement with OPIC will help IndusInd Bank to further enhance our MSME lending franchise, thus providing the impetus to some of the major growth drivers of our economy. This also marks a significant milestone for the bank as it helps us reach out to a new class of global investors to drive our growth," said MD and Chief Executive Officer of IndusInd Bank, Romesh Sobti.
Earlier, Wells Fargo Bank also signed a USD 20 million finance agreement at the event supporting IndusInd Bank's MSME lending, which will include at least 25 percent dedicated to women entrepreneurs.