New Delhi, Mar 26 (KNN) The Asian Development Bank (ADB) has signed a significant loan agreement with Shriram Finance Limited worth USD 150 million, aimed at expanding financial access for micro, small, and medium-sized enterprises (MSMEs) in India.
The strategic financing package will focus on business loans and support the acquisition of electric vehicles (EVs) and low-emission commercial vehicles, with a particular emphasis on empowering women-owned businesses and enterprises in underdeveloped regions.
The comprehensive transaction is part of a larger USD 306 million financing initiative led by ADB, which includes additional contributions from the Japan International Cooperation Agency and the Export-Import Bank of India.
Shriram Finance Limited, the flagship company of the Shriram Group, is a prominent non-banking financial institution specialising in commercial vehicle financing and MSME lending.
MSMEs represent a critical segment of India’s economic landscape, contributing 30 per cent of the country’s GDP and employing over 123 million people.
Despite their economic significance, these enterprises face substantial challenges in accessing formal credit, with financial institutions currently serving only a quarter of the MSME market.
Women entrepreneurs encounter even more pronounced barriers, including restrictive social norms and limited collateral access.
ADB Country Director for India, Mio Oka, highlighted the strategic importance of the partnership, stating that the project underscores ADB’s commitment to financial inclusion and sustainable development.
“By collaborating with Shriram Finance Limited, we aim to empower MSMEs, particularly women entrepreneurs, and accelerate the transition to electric mobility, which is crucial for reducing air pollution and achieving India’s climate goals,” Oka explained.
The loan will enable Shriram Finance to provide tailored financial solutions, targeting underserved segments in rural and semi-urban areas, and creating economic opportunities for women-owned businesses.
Additionally, the financing aligns with the government’s initiatives to reduce air pollution through EV adoption and the promotion of low-emission vehicles compliant with Bharat Stage-VI standards.
Umesh Revankar, Executive Vice Chairman, Shriram Finance Limited, expressed enthusiasm about the partnership, emphasising its alignment with the company’s corporate mission of driving inclusive growth and supporting India’s transition to a greener economy.
“This facility reinforces our commitment to financial inclusion and economic development,” Revankar noted.
With a robust network of 3,196 branches and 79,405 employees serving over 9 million customers, Shriram Finance is strategically positioned to support underserved MSMEs and accelerate the adoption of electric and low-emission vehicles.
The ADB’s involvement further strengthens this mission, leveraging innovative financial tools and strategic partnerships to transform lives and safeguard economic progress.
As a leading multilateral development bank, ADB continues to support sustainable, inclusive, and resilient growth across Asia and the Pacific, working collaboratively with its 69 members to address complex economic and environmental challenges.
(KNN Bureau)
