IndusInd Bank has signed an agreement with the Asian Development Bank to provide finance to low income women borrowers in rural areas to start their own ventures. Under the agreement ADB will give a loan of up to $200 million to the bank for the purpose. The 7-year senior loan will be available to the bank under its microfinance activities. Christine Engstrom, director at ADB’s private sector operations department, said ADB is proud to partner with IndusInd Bank in its efforts to expand finance to underserved people in India’s less developed states. At least 95% of the funding for the project will be used to provide credit to women borrowers and at least 70% of the number of loans will be deployed in less developed states. ADB’s aim is to reach an additional 200,000 low-income members by 2020.
