US DFC lends USD 35Mn to CAG to uplift 500,000 female entrepreneurs

By Ayushi Garg  | Date: 2022-10-19

US DFC lends USD 35Mn to CAG to uplift 500,000 female entrepreneurs

The domestic microlender CreditAccess Grameen Limited (CAG), will reportedly acquire a USD 35 million loan from the US government agency Development Finance Corporation (DFC), which will ultimately assist 500,000, female entrepreneurs in obtaining finance.

According to Udaya Kumar, CAGs Managing Director and Chief Executive, the credit facility for USD 35 million has a tenor of seven years and includes a specific allocation for unmarried women.

Notably, a contract guaranteeing a USD 10 million loan for Punjab Renewable Energy Systems Pvt. Ltd. has been signed by the US government entity, in an attempt to finance the construction of seven biomass plants. Moreover, DFCs Chief Executive Scott Nathan on his tour to India signed the agreement which was done as part of President Joe Biden's administration's efforts to strengthen US-Indian relations and further the causes it has pledged to promote.

According to Nathan, the US government arm is dedicated to supporting financial inclusion and sustainable energy causes. Since its formation in 2019, the DFC has committed USD 3 billion of funding to Indian private sector firms, making India the programs largest recipient.

During Nathan's 3-day visit to New Delhi from 18th October – 20th October, DFC is planning to announce help for the healthcare sector as well as consider additional key areas including closing the digital divide and improving infrastructure.

In the context of a recent survey that showed India's decline in the world hunger index, Nathan stated that the DFC places a high premium on food security which it does through supporting transportation, cold storage, and technology solutions. Furthermore, USD 30 million had been pledged for an agri-tech fund, and USD 10 million had been handed to a milk company operating in the same region.

He made it explicit that the US government provides unconditional capital support to crucial areas and in a transparent manner, and that it is sustainable in response to a query regarding the rising concern about foreign capital entering the country.

Source Credit:

https://www.moneycontrol.com/news/world/us-govt-arm-lends-usd-35-million-to-creditaccess-grameen-to-help-women-entrepreneurs-9351321.html

About Author

Ayushi Garg     aeresearch.net

Ayushi Garg

Currently working as an associate content writer, Ayushi pens down insightful articles for several websites. She began her profession by taking classes in digital marketing to broaden her skills. Given her passion for writing, she took up several freelancing projects ...

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