L&T Finance, a Non-Banking Financial Company (NBFC), said it has signed a financing agreement with Asian Development Bank (ADB) for $125 million to support financing in rural and peri-urban areas in India, particularly for women borrowers.

The funding comprises a loan of up to $125 million from ADB, and an agreement to syndicate an additional $125 million co-financing from other development partners. At least 40% of the proceeds is allocated for women borrowers, while the rest will support farmers, Micro, Small and Medium-sized Enterprises (MSMEs), as well as loans to purchase new two-wheeled vehicles.

Sachinn Joshi, Group Chief Financial Officer, L&T Finance said, “This collaboration with ADB aligns with our core values of social responsibility. We believe this partnership with ADB is a significant step and will boost our ongoing efforts of bridging the financial gap and promoting inclusive economic growth across the country.”

“For our Company, this long-term loan forms a part of our continuous strategy of diversifying our funding sources. We recognise the deep impact that financial inclusion has on the communities we serve in. And, through our on-lending activities in the underserved and lagging states in India, we pursue to be a catalyst for empowering individuals especially the women, farmers and MSMEs thus foster economic resilience,” he said.