L&T Finance inks $125-m pact with ADB to support rural India

L&T Finance, one of the leading non-banking financial companies in the country, has signed a financing pact with ADB for $125 million to support financing in rural and peri-urban areas of India, particularly for women borrowers.

The funding comprises a loan of up to USD 125 million from ADB and an agreement to syndicate an additional $125 million in co-financing from other development partners. At least 40 percent of the proceeds are allocated to women borrowers, while the rest will support farmers, micro, small, and medium-sized enterprises (MSMEs), as well as loans to purchase new two-wheeled vehicles.

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Commenting at the signing ceremony, Sachinn Joshi, Group Chief Financial Officer, L&T Finance, said, “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. At L&T Finance, we recognise the deep impact that financial inclusion has on the communities we serve. And, through our on-lending activities in the underserved and lagging states in India, we pursue to be a catalyst for empowering individuals, especially women, farmers, and MSMEs, thus fostering economic resilience.”