Bengaluru, February 3, 2025 – CreditAccess Grameen Limited (NSE: CREDITACC, BSE: 541770), India's largest Non-Banking Financial Company-Micro Finance Institution (NBFC-MFI), has secured a $50 million investment from the International Finance Corporation (IFC) to enhance financial inclusion for underserved communities, particularly women borrowers engaged in agriculture and micro-enterprises.
Key Highlights of the Investment
- Funding Amount: $50 million
- Investor: International Finance Corporation (IFC)
- Objective: Strengthen asset liability management (ALM), ensure geographical diversification, and promote financial access for microentrepreneurs
- Expected Impact: Increase financial outreach to 3-4 million additional women borrowers
- Strategic Benefit: Supports FY28 medium-term strategy of sourcing 25%-30% of funds from foreign sources while optimizing borrowing costs
Enhancing Financial Access for Microenterprises
The funding will address the significant financing gap in India’s micro, small, and medium-sized enterprises (MSMEs) sector, which currently faces an estimated
$333 billion credit deficit, with
95% of the shortfall attributed to micro and small enterprises. This investment will empower underserved entrepreneurs and foster economic growth.
IFC's investment will provide
long-tenor financing, aiding CreditAccess Grameen in strengthening its
liability profileand resilience against market fluctuations.
Commitment to Responsible Financing
CreditAccess Grameen continues to uphold high standards of responsible financing, aligning with
IFC’s Exclusion List and the
Client Protection Principles set by
Cerise+ SPTF (Social Performance Task Force). This ensures that its business practices remain socially responsible and inclusive.
Management Commentary
Nilesh Dalvi, Chief Financial Officer, CreditAccess Grameen, expressed gratitude for the continued partnership with IFC:
“We deeply value our enduring partnership with IFC, whose continued support has been instrumental in our growth journey. With this USD 50 million commitment from IFC under the external commercial borrowing (ECB) route, we are firmly moving towards our FY28 medium-term strategy of sourcing 25%-30% of funds from foreign sources while maintaining strong control over our average cost of borrowings. We remain confident in our ability to deliver innovative financial solutions to underserved communities while ensuring resilience in an ever-changing market landscape.”
Wendy Werner, IFC Country Head for India and Maldives, highlighted the investment’s role in financial inclusion:
"Financial inclusion is a key driver of economic and social development, especially in the agriculture sector. Our long-standing partnership with CA Grameen aims to address barriers to accessing financial products and services while improving their usage and quality. IFC's investment will foster greater competitiveness within India’s financial sector, bringing more individuals engaged in agriculture and agri-related activities into the formal economy and encouraging the growth of women-owned micro-enterprises in underserved rural areas.”
About CreditAccess Grameen Limited
CreditAccess Grameen is a leading Indian
microfinance institution headquartered in Bengaluru, operating in
422 districts across 16 states and 1 union territory with
2,059 branches. Its primary focus is providing
micro-loans to women customers in rural India. The company is promoted by
CreditAccess India B.V., a multinational firm specializing in micro and small enterprise financing.
About IFC
The
International Finance Corporation (IFC), part of the
World Bank Group, is the largest global development institution dedicated to private sector growth in emerging markets. In fiscal year 2024, IFC committed
$56 billion to private companies and financial institutions in developing economies.
Conclusion
This investment underscores CreditAccess Grameen’s commitment to
expanding financial inclusion in India while maintaining
financial sustainability and diversification. By leveraging IFC's support, the company is poised to
empower millions of underserved women entrepreneurs and bolster economic growth in rural India.
