CreditAccess Grameen Limited (CA Grameen), India’s largest Non-Banking Financial Company-Micro Finance Institution (NBFC-MFI), has received approval for a USD 50 million investment commitment from the International Finance Corporation (IFC). This funding aims to strengthen CA Grameen’s asset-liability management (ALM) position by offering flexible repayment structures and ensuring geographical diversification to mitigate market volatility.
The investment will focus on enhancing access to finance for microentrepreneurs, particularly women engaged in agriculture and agri-related activities. With a goal of reaching 3-4 million additional women borrowers, the funding will bridge the financing gap in India’s Micro, Small, and Medium Enterprises (MSMEs) sector, which faces a staggering USD 333 billion financing shortfall. Most of this gap is attributed to micro and small enterprises.
This strategic collaboration will also help CA Grameen diversify its liability profile, incorporating long-tenor financing. By adhering to the IFC Exclusion List and the Client Protection Principles by Cerise+ SPTF, CA Grameen is committed to responsible finance practices.