ADB to Lend $150 Mn for MSME Credit and EV Financing in India
28 Mar 2025
2 Min Read
CW Team
The Asian Development Bank (ADB) has signed a $150 million loan agreement with Shriram Finance to enhance financial access for micro, small, and medium-sized enterprises (MSMEs) in India. This funding will primarily support business loans, the acquisition of electric vehicles (EVs), and low-emission commercial vehicles, with a strong focus on women-owned businesses and enterprises in underdeveloped regions.
This agreement forms part of a broader $306 million financing initiative led by ADB, which also includes contributions from the Japan International Cooperation Agency and the Export-Import Bank of India. The initiative aims to promote financial inclusion, sustainable development, and green mobility across the country.
Shriram Finance, a key non-banking financial company under the Shriram Group, specializes in commercial vehicle financing and MSME lending. MSMEs play a vital role in India鈥檚 economy, accounting for 30% of the GDP and employing more than 123 million people. However, they often face difficulties in securing formal credit, with only about 25 per cent of the market currently served by financial institutions. Women entrepreneurs, in particular, encounter additional challenges such as limited collateral and social barriers.
The loan will allow Shriram Finance to offer customized financial solutions to underserved communities, particularly in rural and semi-urban areas. It will also help accelerate the adoption of EVs and low-emission vehicles that comply with Bharat Stage-VI standards, in alignment with India鈥檚 goals to reduce air pollution and transition to a greener economy.
With a wide operational footprint of over 3,100 branches and a customer base exceeding 9 million, Shriram Finance is well-positioned to drive inclusive growth. ADB鈥檚 strategic partnership is expected to significantly boost efforts in transforming India鈥檚 MSME landscape and supporting its climate commitments.
News source: KNN India
The Asian Development Bank (ADB) has signed a $150 million loan agreement with Shriram Finance to enhance financial access for micro, small, and medium-sized enterprises (MSMEs) in India. This funding will primarily support business loans, the acquisition of electric vehicles (EVs), and low-emission commercial vehicles, with a strong focus on women-owned businesses and enterprises in underdeveloped regions.
This agreement forms part of a broader $306 million financing initiative led by ADB, which also includes contributions from the Japan International Cooperation Agency and the Export-Import Bank of India. The initiative aims to promote financial inclusion, sustainable development, and green mobility across the country.
Shriram Finance, a key non-banking financial company under the Shriram Group, specializes in commercial vehicle financing and MSME lending. MSMEs play a vital role in India鈥檚 economy, accounting for 30% of the GDP and employing more than 123 million people. However, they often face difficulties in securing formal credit, with only about 25 per cent of the market currently served by financial institutions. Women entrepreneurs, in particular, encounter additional challenges such as limited collateral and social barriers.
The loan will allow Shriram Finance to offer customized financial solutions to underserved communities, particularly in rural and semi-urban areas. It will also help accelerate the adoption of EVs and low-emission vehicles that comply with Bharat Stage-VI standards, in alignment with India鈥檚 goals to reduce air pollution and transition to a greener economy.
With a wide operational footprint of over 3,100 branches and a customer base exceeding 9 million, Shriram Finance is well-positioned to drive inclusive growth. ADB鈥檚 strategic partnership is expected to significantly boost efforts in transforming India鈥檚 MSME landscape and supporting its climate commitments.
News source: KNN India
Next Story
RentenPe and Mygate Partner to Transform Rent Payments in India
Through a strategic partnership, RentenPe and Mygate aim to streamline rent payments and promote financial inclusion by enabling rent-based credit scores for Indian renters. RentenPe, India鈥檚 first Rent Credit Score鈩� platform and a pioneer in rental fintech innovation, has entered a significant alliance with Mygate, the leading community management app in the country. This partnership will transform rent transactions for millions of Indian households by embedding RentenPe鈥檚 payment and rent credit scoring technology directly within the Mygate app. With this integration, all ren..
Next Story
Supreme Unveils New Brand Identity to Elevate Lifestyle
Supreme, a respected name in Indian real estate with a four-decade legacy, has announced a complete rebranding. The move includes the launch of a new logo and a revamped website, both reflecting the group鈥檚 refreshed vision to 鈥楨levate Lifestyle鈥�. This brand transformation represents more than a visual refresh鈥攊t marks a strategic shift in the company鈥檚 mission, visual identity and market positioning. The update will be visible across all of Supreme鈥檚 digital, social and offline communication platforms. At the core of the initiative is a renewed focus on purposeful design..
Next Story
Capri Loans Launches #TarrakiKeHaath Campaign Honouring India鈥檚 Everyday Heroes
Capri Global Capital Ltd (Capri Loans), a leading non-banking financial company, has unveiled its latest brand campaign, #TarrakiKeHaath, a powerful tribute to the everyday hands that build India 鈥� from kirana store owners and taxi drivers to dhaba workers, tailors, and carpenters. Narrated by Capri Loans鈥� long-standing brand ambassador and acclaimed actor Pankaj Tripathi, the campaign celebrates the dignity, resilience, and aspirations of self-employed individuals and small business owners who form the backbone of Bharat鈥檚 economy. Conceptualized by Rediffusion Brand Solutions, the..
