L&T Finance Secures $125 Million Agreement with ADB to Boost Rural India

L&T Finance, a prominent non-banking financial company in India, has formalized a financing agreement with the Asian Development Bank (ADB) amounting to $125 million. This collaboration aims to bolster financial support in rural and peri-urban areas of India, with a particular focus on empowering women borrowers.

The funding structure consists of a $125 million loan from ADB, supplemented by an agreement to syndicate an additional $125 million in co-financing from various development partners. Notably, a minimum of 40 percent of the allocated funds is earmarked for women borrowers, while the remaining portion will be directed towards supporting farmers, micro, small, and medium-sized enterprises (MSMEs), as well as loans for the acquisition of new two-wheeled vehicles.

Sachinn Joshi, Group Chief Financial Officer at L&T Finance, expressed enthusiasm about the collaboration during the signing ceremony. He stated, "This collaboration with ADB aligns with our core values of social responsibility. We believe this partnership with ADB is a significant step and will boost our ongoing efforts to bridge the financial gap and promote inclusive economic growth across the country. For our company, this long-term loan forms part of our continuous strategy of diversifying our funding sources."

Joshi emphasized L&T Finance's commitment to addressing the financial needs of underserved communities, especially in regions that lag in economic development. He highlighted the company's role as a catalyst for empowerment, focusing on individuals, particularly women, farmers, and MSMEs. Through on-lending activities in economically underserved states, L&T Finance aims to contribute to fostering economic resilience and inclusivity.

HBL