Multilateral funding agency Asian Development Bank (ADB) has sanctioned USD 100 million (about `830 crore) to Shriram Finance Limited (SFL) to provide vehicle loans to women entrepreneurs. The $100 million External Commercial Borrowing (ECB) is a five-year loan and is under SFL’s Social Finance framework to provide credit towards the purchase of new and used vehicles throughout India, Shriram Finance said in a statement.
Proceeds from ADB can be used for vehicle finance for commercial purposes for BS VI compliant vehicles and electric vehicles, specifically, finance women entrepreneurs, cater to under-developed states of the country and empower and promote the social and economic status of the underserved communities, it added.
Besides the ADB loan, SFL has also successfully raised $250 million from US Development Finance Corporation and $ 475 million through a 144A Bond from the international market in 2022, thereby continuing to diversify its funding profile and continue its objectives for financial inclusion.
