US Institutional Loans for Women and Small and Medium Enterprises in India

The United States Agency for International Development and the United States International Finance Corporation for Development Finance are jointly offering $ 50 million in guarantees for India’s loan portfolio. Kotak Mahindra Bank will offer women and small business owners domestically, the agencies said in Press release…

The message says that among the beneficiaries will be owners of micro, small and medium-sized businesses.

The program reportedly aims to help 30,000 women (half of the loans are to go to women-led organizations), as well as 7,500 small and micro-enterprise owners.

“Amid the pandemic, this partnership will help MSMEs affected by loans to access COVID-19 to rebuild and expand their businesses,” USAID said in a statement.

In India, the program will be supported by Chennai-based NBFC Vivriti Capital using a platform called Credavenue… The NBFC is said to cover initial losses of up to $ 1 million if they occur.

“These two segments have been hit by the ongoing pandemic, and this program will provide loans and help women entrepreneurs and MSMEs not only expand their businesses but also create jobs,” KMB Group President D. Cannan said in a press release.

USAID Mission Director in India Wine Reddy reportedly said, “At USAID, we believe that gender equality and the empowerment of women are not only part of development, but also the foundation of development. Women in India have been disproportionately affected by the COVID-19 pandemic, facing economic hardships that directly impact their livelihoods. their families and communities. “

“Empowering women-owned MSMEs is critical to fostering inclusive growth in India and will also contribute to India’s recovery from the pandemic,” Aljin Sajeri, vice president of External Relations and Head of Global Gender Initiatives at the Development Finance Corporation, said in a statement. “DFC is proud to support this program, which brings together key players in the Indian financial system to help increase the reach and impact of our development loan guarantee.”