HSBC India will extend its loans to microfinance institutions and non-banking financial companies, with the AfDB partially guaranteeing the loans. About 4 lakh borrowers can be supported through this initiative, HSBC said.
“This will increase HSBC India’s risk appetite and deployed capital, helping to strengthen private sector financing and improve financial inclusion in India,” the bank said in a statement.
This is ADB’s first partnership with HSBC India. As part of the agreement, total financial support equivalent to $30 million will be disbursed to three local MFIs by April 2022.
The partial guarantee agreement will help MFIs access funding for on-lending activities as they expand their operations post-pandemic.
“Microfinance in India has had a massive impact on people’s lives as they struggled to cope with the global pandemic and has another critical role to play as we slowly come out of it,” the bank manager said. HSBC India sales representative, Rajat Verma. in a statement issued by the bank.