IndusInd Bank secures Rs 1,243 cr from DFC for giving micro loans to women

IndusInd Bank said it has secured a loan of over Rs 1,243 crore from the US International Development Finance Corporation for expanding the bank's microfinance lending to women in select states

IndusInd Bank on Friday said it has secured a loan of over Rs 1,243 crore from the United States International Development Finance Corporation (DFC) for expanding the bank's microfinance lending to women in select states.

IndusInd Bank has executed a commitment letter with the United States International Development Finance Corporation for the loan worth USD 150 million, IndusInd Bank said in a release.

The private sector lender plans to use the proceeds to expand its microfinance lending to women borrowers in rural communities of Jharkhand, Uttar Pradesh and Bihar.

The bank said it aims to boost access to finance for women borrowers under this programme. It will also help in uplifting the livelihoods of these women and their families, IndusInd Bank said.

This project advances DFC and the bank's commitment to economically empower women customers.

Asserting its commitment towards financial inclusion and making credit available to large swathes of unbanked and underbanked in the country, Sumant Kathpalia, Managing Director and Chief Executive Officer of IndusInd Bank, said this programme aligns with the bank's philosophy.

"This also marks a significant milestone for the bank and shows the continued trust of the global investors in the bank's focus on sustainable growth," Kathpalia said.

The lender acquired Bharat Financial Inclusion (BFIL) in 2019 for microfinance lending.

These customers are an important segment of the Indian economy, but are often constrained by lack of access to capital, it added.