HDFC Bank, Mastercard, USAID and DFC Launch $ 100 Million Credit Facility for Micro, Small and Medium Enterprises (MSMEs) in India

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Posted an hour ago

Proposed by MasterCard Center for Inclusive Growth

  • The credit facility will extend working capital loans to small businesses that need financing to support their digitization and recovery from the effects of the pandemic
  • It will be made available exclusively to new credit customers with a target of at least 50% of women entrepreneurs

HDFC Bank, Mastercard, USAID and DFC Launch $ 100 Million Credit Facility for Micro, Small and Medium Enterprises (MSMEs) in India

HDFC Bank, Mastercard, the American International Development Finance Corporation (DFC) and the United States Agency for International Development (USAID) have launched a $ 100 million credit facility to promote and encourage Indian small businesses to become digitize, while helping Indian businesses, especially those owned by women, to recover from the economic impacts of the pandemic.

COVID-19 has had a disproportionate impact on small businesses, forcing many to close prematurely. Additionally, the accelerated shift to digital payments spawned by the pandemic means that small businesses must adapt to changing market dynamics and consumer preferences to remain competitive and retain customers.

The new credit facility aims to expand lending to small businesses that need financing to maintain and grow their operations, and enable recovery through digitization, with an emphasis on supporting women-led businesses.

“HDFC Bank is proud to partner with Mastercard, USAID and DFC to support small businesses in India. MSMEs are the backbone of India’s economy and the ongoing pandemic has affected their lives and businesses. This partnership, in our view, will not only provide credit, but also advise and help them modernize and digitize their businesses. The highlight of this initiative is our commitment to empower women entrepreneurs in India and to be a meaningful partner in their entrepreneurial journey, ”said Rahul Shukla, Group Head – Commercial and Rural Bank, HDFC Bank.

“At USAID, we believe that gender equality and the empowerment of women are not only part of development, but at the heart of it. Women have been disproportionately affected by the COVID-19 pandemic, facing economic hardship that directly affects the livelihoods of their families and communities. Through this partnership, USAID will help facilitate access to finance and support the digitization journey for small businesses and women-owned entrepreneurs to help them recover from the pandemic and reach their full potential. Said Veena Reddy, Mission Director, USAID India.

“DFC is proud to support this partnership to increase funding for small businesses, especially women-owned ones, in India as they seek to digitize, modernize and become more resilient,” said Algene Sajery , Vice President of the DFC External Affairs Office and Head of Global Gender Equity Initiatives. “This funding will allow Indian women to stay in the workforce, succeed as entrepreneurs and become more economically self-sufficient, which will lead to post-COVID-19 economic stabilization, GDP growth and an increase in the economy. ‘job, regardless of gender. “

“Partnerships that align the strengths of the private sector, government and philanthropy are key to rebuilding stronger after the pandemic,” said Nikhil Sahni, division president, South Asia, Mastercard. “Mastercard’s partnership with HDFC Bank, USAID and DFC is timely as it will provide much needed funding to support MSMEs on their digitization journey, building their resilience through greater participation in the digital economy. “

How will the partnership work?

  • To enable small businesses and women entrepreneurs to connect to the networks that power the digital economy, HDFC Bank will go beyond its current customer base to make at least 50% of this credit facility available to new small borrowers. companies, with a target of at least 50% of the facility being used for loans to women entrepreneurs. HDFC Bank will channel credit through its extensive network of branches nationwide.
  • Through existing collaborations with the Confederation of Indian Industry (CII) and the Confederation of All Indian Traders (CAIT), Mastercard will provide training and education to small business owners on their digitization options. The Mastercard Center for Inclusive Growth will also help them increase their income through a range of nationwide philanthropic training programs. This initiative is part of Mastercard’s commitment of INR $ 33 million (250 crore) to enable small businesses in India to recover from the impact of COVID-19.
  • DFC and USAID make it easier to extend the credit facility by reducing the risk of HDFC Bank loans to small business owners. DFC’s investment supports its 2X Women Initiative, through which the agency invests in projects owned by women, led by women, or provides a product or service that empowers women. This program is part of USAID’s COVID-19 response in India as well as its global Women Economic Empowerment Fund initiative.

About HDFC

For more information, please connect to: www.hdfcbank.com.

About the American International Development Finance Corporation (DFC)

US International Development Finance Corporation (DFC) is the development bank of the United States. DFC partners with the private sector to fund solutions to the most critical challenges facing the developing world today. We invest in all sectors, including energy, health, critical infrastructure and technology. DFC also provides finance to small businesses and women entrepreneurs to create jobs in emerging markets. DFC investments adhere to high standards and respect the environment, human rights and workers’ rights. To learn more, visit www.dfc.gov.

About USAID

USAID is the United States government’s premier international development agency and a catalyst for driving development results. USAID works to help improve lives, build communities, and advance democracy. USAID’s work advances US national security and economic prosperity; demonstrates American generosity; and helps countries progress along their development journey. To learn more, visit www.usaid.gov.

About Mastercard (NYSE: MA), www.mastercard.com
Mastercard is a global technology company in the payments industry. Our mission is to connect and power an inclusive digital economy that benefits everyone, everywhere by making transactions safe, simple, smart and accessible. Using secure data and networks, partnerships and passion, our innovations and solutions help individuals, financial institutions, governments and businesses realize their greatest potential. Our decency quotient, or DQ, drives our culture and everything we do inside and outside of our business. With connections in more than 210 countries and territories, we are building a sustainable world that opens up invaluable possibilities for all.

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The Mastercard Center for Inclusive Growth focuses on promoting equitable and sustainable economic growth and financial inclusion around the world. As an independent subsidiary of Mastercard, it combines data, expertise and technology with philanthropic investments to empower a community of thinkers, leaders and innovators on the front lines of inclusive growth. Follow us on Twitter @ CNTR4growth and subscribe to receive our latest information.

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