HDFC Bank, Mastercard, USAID and DFC launch $100 Mn credit facility for MSME

HDFC Bank, Mastercard, USAID and DFC launch $100 Mn credit facility for MSME

A $100 million credit facility was launched today by HDFC Bank, Mastercard, the United States International Development Finance Corporation (DFC), and the United States Agency for International Development (USAID) to help Indian small businesses digitise and recover from the economic effects of the pandemic.

As a result of COVID-19, small firms have been forced to close early. Small businesses must adjust to changing market dynamics and consumer preferences in order to remain competitive and keep customers as a result of the pandemic's faster migration to digital payments.

Small firms that require finance to maintain and grow their operations as well as enable recovery through digitization will benefit from the new loan facility, which places an emphasis on assisting women-led businesses.

"To help small enterprises in India, HDFC Bank has teamed up with Mastercard, USAID, and DFC Bank. The current pandemic has had a negative impact on the lives and companies of MSMEs, who are the backbone of the Indian economy. It's our belief that this alliance will do more than just aid issue loans; it will advise and assist them as they try to upgrade and automate their operations. The most notable aspect of this project is our dedication to supporting Indian women entrepreneurs and being a valuable resource for them along the way "HDFC Bank's Group Head of Commercial and Rural Banking, Rahul Shukla, concurred.

"We at USAID believe that gender equality and the empowerment of women are essential components of development. As a result of the COVID-19 epidemic, women have suffered disproportionately, with their families and communities suffering as a result. To help women-owned small enterprises and entrepreneurs recover from the pandemic and realise their full potential, USAID is partnering with them to make access to finance and digitalization easier "Veena Reddy, USAID India Mission Director, echoed same sentiments.

With this relationship, DFC hopes to help more small businesses in India, particularly those run by women, modernise and become more resilient. DFC Vice President for External Affairs and Head of Global Gender Equity Initiatives Algene Sajery stated that DFC is proudly supporting this initiative. After COVID-19, this funding will allow Indian women to continue in the workforce while also allowing them to flourish as business owners and gain more economic empowerment. This will lead to greater job opportunities for all Indians, regardless of gender.

According to Nikhil Sahni, South Asia Division President, "partnerships that connect the strengths of the private sector, government, and philanthropy are crucial to rebuild stronger from the pandemic." Because it provides much-needed finance to assist MSMEs in their digitization journey, MasterCard's cooperation with HDFC Bank, USAID and DFC comes at a perfect time.