L&T Finance Secures $125 Million Loan from Asian Development Bank to Support Rural Financing

On Thursday, non-banking financial company L&T Finance announced the signing of a USD 125 million loan agreement with the Asian Development Bank (ADB) to facilitate financing in rural and peri-urban areas in India, with a particular focus on women borrowers. The funding arrangement includes a loan of up to USD 125 million from ADB, along with an agreement to syndicate an additional USD 125 million co-financing from other development partners, as stated by L&T Finance in a press release.

A minimum of 40% of the funds will be earmarked for women borrowers, while the remainder will be directed towards supporting farmers, micro, small, and medium-sized enterprises (MSMEs), as well as loans for the purchase of new two-wheelers, among other initiatives.


The identified segments of microloans, farm equipment loans, two-wheeled vehicle loans, and MSME loans are expected to exhibit robust growth potential in the medium term, according to the statement.

By concentrating on lending in rural and peri-urban areas of underdeveloped states in India, the project aligns strategically with the objectives of the Ministry of Rural Development.

This initiative reflects a commitment to inclusive and targeted financial support, especially in regions that have traditionally faced challenges in accessing adequate financing.

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