Private lender Yes Bank has inked a tripartite agreement for on-lending $50 million loan from World Bank arm IFC to women entrepreneurs.
The bank will engage Goldman Sachs for identification and lending methodology to reach out to credit worthy businesswomen, the lender said in a statement.
This project is part of the Women Entrepreneurs Opportunity Facility (WEOF), the first-of-its-kind global facility dedicated to expanding access to capital for approximately 100,000 women entrepreneurs.
WEOF was launched by IFC, through its Banking on Women program, and Goldman Sachs 10,000 Women in 2014.
An estimated three million women-owned businesses in India employ over eight million people. However, only about a quarter of them are able to get the finance they need to grow and create jobs.|
The $50-million Yes Bank loan aims to support women in all 29 states and 7 union territories in India.
Rana Kapoor, Managing Director and CEO, Yes Bank, said: "This is a significant step towards strengthening the entrepreneurial ecosystem for women and will directly impact livelihoods. This facility demonstrates Yes Bank's ability to partner with global institutions like IFC and Goldman Sachs 10,000 Women to expand access to finance to the unbanked and underserved populations and achieve our vision of responsible banking. This facility will also complement various Government of India schemes for women entrepreneurs."
“Women entrepreneurs have the potential to power growth and shape the Indian economy, but the lack of access to finance is holding them back. This is something our Banking on women programme is working to change,” said Marcos Brujis, Global Director, Financial Institutions Group, IFC.
Brujis said the partnership will help IFC's strategy to boost financial inclusion in India.
"In partnership with IFC, we have created the first ever global finance facility dedicated exclusively to women entrepreneurs. Through Yes Bank's established local network we hope to place more capital in the hands of women entrepreneurs in India", said Sonjoy Chatterjee, Chairman and Co-Chief Executive Officer of Goldman Sachs in India.
He said the Goldman Sachs 10,000 Women initiative has provided business training to over 1,300 women entrepreneurs in India to help them grow their businesses.
In 2014, Yes Bank raised $200 million loan from Asian Development Bank to lend to rural women in self help groups (SHGs) and small farm households.
IFC’s banking on women programme has committed 34 investments globally, totalling over $1 billion, since its launch in 2010.
