At least 40% of the funds will be allocated to women borrowers while the rest will be disbursed to farmers, MSMEs, and two-wheeler loans. Last November, L&T Finance sourced $125 million from Asia Development Bank for a similar lending programme.
“Despite steady rural economic growth, accessing financial services remains a challenge for rural communities, Ms. Apurva Rathod, Company Secretary & Chief Sustainability Officer of the company. “A large percentage of marginal farmers lack formal access to credit, with women being disproportionately affected.”
Rural India, is home to about 65% of the country’s population and widely supports the Indian economy, sustaining about 46% of the national GDP. About 90% of India’s impoverished population resides in the rural area, where the income growth rate has decreased further, especially post COVID-19, making poverty reduction a pressing issue, said JICA in a release.