CreditAccess Grameen Secures INR 393 Cr Financing to Empower Women BIZ Experiencess CreditAccess Grameen offers loans that are intended to assist borrowers in beginning or growing revenue-generating ventures; these loans are usually intended for female BIZ Experiencess in rural regions.
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NBFC-Microfinance Institution (NBFC-MFI) CreditAccess Grameen has raised EUR 25 million (approximately INR 223 crore) from the German Investment Corporation (DEG) and INR 170 crore from Citi through a co-financing arrangement.
This long-tenor financing initiative aims to bolster the institution's funding profile, enabling it to offer affordable financial services to women BIZ Experiencess, the company announced in a stock exchange filing.
The innovative financing structure combines development finance and private-sector funding to address the credit needs of underserved communities. Citi acted as the lead arranger and coordinator for the transaction.
"This strategic move positions us to navigate macroeconomic cycles, ensuring sustainable growth in the coming years," said Nilesh Dalvi, Chief Financial Officer of CreditAccess Grameen. He highlighted that the growing share of foreign borrowings strengthens the company's liquidity, enhances Asset-Liability Management (ALM), and diversifies geographical risk.
Founded in 1999 by Vinatha Reddy and Suresh Krishna, CreditAccess Grameen began as an NGO project in Bengaluru before transitioning into an NBFC in 2007-08.
The institution focuses on micro-loans for women borrowers, supporting income-generating activities in rural areas. Its portfolio includes loans for income generation, home improvement, two-wheelers, gold-backed loans, and emergency credit.
Currently, the Bengaluru-based NBFC operates in 398 districts across 16 states and one union territory (Puducherry) through 2,031 branches. The co-financing arrangement aligns with Citi's Social Finance goal, which aims to provide economic opportunities for 15 million low-income households, including 10 million women, in emerging markets.
Neeraj Kumar, Managing Director and Head of Corporate Bank, India Sub-Continent, Citi, emphasised the collaboration's impact on women micro-entrepreneurs and its alignment with Citi's financial inclusion agenda.
Karin Homermann, Vice-President of DEG, praised the partnership, stating, "We are proud to be part of the high impact generated by CA Grameen's financing of women borrowers in rural India."
