loan to HDFC Bank for women
microfinance
The International Finance
Corporation (IFC) has provided a
$500 million loan to HDFC Bank to
provide loans to women
microfinance borrowers. This
information was provided by HDFC
Bank on May 17, 2024.
India's largest private sector bank
will use the loan amount to provide
loans to women self-help groups
(SHGs) and joint liability groups
(JLGs) that are engaged in a
sustainable livelihood initiative
(income generation).
Microfinance in India is dominated
by non-banking finance companies
(NBFCs) and small finance banks.
NBFCs provide loans to SHGs or
JLGs at higher rates. Banks having
access to cheap funds in the form
of CASA (Current Account and
Savings Account) deposits can
provide cheap loans to women
SHGs or JLGs.
Muhammad Yunus of Bangladesh is
considered a pioneer of
microfinance in the world. She
founded Grameen Bank, a non-
profit organization to provide
credit to the poor, especially
women. In 2006 he was awarded
the Nobel Peace Prize.
RBI has defined microfinance or
micro-credit as collateral-free loans
given to households with annual
household income up to Rs 3 lakh.
International Finance Corporation
(IFC)
The International Finance
Corporation is a part of the World
Bank Group and was established in
1956. It provides loans not to the
government but to the private
sector. It invests in shares and debt
instruments of private companies.
Its headquarters is Washington DC,
United States.
