+
ADB to Lend $150 Mn for MSME Credit and EV Financing in India
ECONOMY & POLICY

ADB to Lend $150 Mn for MSME Credit and EV Financing in India

The Asian Development Bank (ADB) has signed a $150 million loan agreement with Shriram Finance to enhance financial access for micro, small, and medium-sized enterprises (MSMEs) in India. This funding will primarily support business loans, the acquisition of electric vehicles (EVs), and low-emission commercial vehicles, with a strong focus on women-owned businesses and enterprises in underdeveloped regions.

This agreement forms part of a broader $306 million financing initiative led by ADB, which also includes contributions from the Japan International Cooperation Agency and the Export-Import Bank of India. The initiative aims to promote financial inclusion, sustainable development, and green mobility across the country.

Shriram Finance, a key non-banking financial company under the Shriram Group, specializes in commercial vehicle financing and MSME lending. MSMEs play a vital role in India’s economy, accounting for 30% of the GDP and employing more than 123 million people. However, they often face difficulties in securing formal credit, with only about 25 per cent of the market currently served by financial institutions. Women entrepreneurs, in particular, encounter additional challenges such as limited collateral and social barriers.

The loan will allow Shriram Finance to offer customized financial solutions to underserved communities, particularly in rural and semi-urban areas. It will also help accelerate the adoption of EVs and low-emission vehicles that comply with Bharat Stage-VI standards, in alignment with India’s goals to reduce air pollution and transition to a greener economy.

With a wide operational footprint of over 3,100 branches and a customer base exceeding 9 million, Shriram Finance is well-positioned to drive inclusive growth. ADB’s strategic partnership is expected to significantly boost efforts in transforming India’s MSME landscape and supporting its climate commitments.

News source: KNN India

The Asian Development Bank (ADB) has signed a $150 million loan agreement with Shriram Finance to enhance financial access for micro, small, and medium-sized enterprises (MSMEs) in India. This funding will primarily support business loans, the acquisition of electric vehicles (EVs), and low-emission commercial vehicles, with a strong focus on women-owned businesses and enterprises in underdeveloped regions. This agreement forms part of a broader $306 million financing initiative led by ADB, which also includes contributions from the Japan International Cooperation Agency and the Export-Import Bank of India. The initiative aims to promote financial inclusion, sustainable development, and green mobility across the country. Shriram Finance, a key non-banking financial company under the Shriram Group, specializes in commercial vehicle financing and MSME lending. MSMEs play a vital role in India’s economy, accounting for 30% of the GDP and employing more than 123 million people. However, they often face difficulties in securing formal credit, with only about 25 per cent of the market currently served by financial institutions. Women entrepreneurs, in particular, encounter additional challenges such as limited collateral and social barriers. The loan will allow Shriram Finance to offer customized financial solutions to underserved communities, particularly in rural and semi-urban areas. It will also help accelerate the adoption of EVs and low-emission vehicles that comply with Bharat Stage-VI standards, in alignment with India’s goals to reduce air pollution and transition to a greener economy. With a wide operational footprint of over 3,100 branches and a customer base exceeding 9 million, Shriram Finance is well-positioned to drive inclusive growth. ADB’s strategic partnership is expected to significantly boost efforts in transforming India’s MSME landscape and supporting its climate commitments. News source: KNN India

Next Story
Infrastructure Energy

Private Sector Builds India’s First Heavy Water Test Facility

In a major stride towards nuclear self-reliance, India’s first privately built test facility for upgrading depleted heavy water has been commissioned by TEMA India Ltd. The facility was inaugurated by Shri Rajesh V, Director – Technical, Nuclear Power Corporation of India Ltd (NPCIL), and Shri K. T. Shenoy, Director, Chemical Engineering Group, BARC. Developed under a technology transfer from BARC and a purchase order from NPCIL, the unit represents a landmark in public-private collaboration and supports the government’s Atma-Nirbhar Bharat initiative.Previously, critical testing for hea..

Next Story
Infrastructure Energy

Coal Ministry Pushes Digital Drive With SWCS Training Session

In a bid to accelerate digital transformation in the coal sector, the Ministry of Coal conducted a hands-on training workshop and interactive session on the Exploration Module of the Single Window Clearance System (SWCS) on 25 July 2025. Held at Tagore Chamber, SCOPE Complex, New Delhi, the session aimed to deepen stakeholders’ understanding of the module’s functionalities and encourage its use for efficient exploration-related submissions and approvals.Ms Rupinder Brar, Additional Secretary and Nominated Authority (AS & NA), chaired the session and stressed the vital role digital plat..

Next Story
Infrastructure Urban

India Enhances Cyber Defences for Critical Infrastructure

The Government of India remains acutely aware of the cyber threats facing the country’s digital and physical infrastructure. Its policies are focused on fostering a safe, trusted, and accountable cyberspace for all users. Several initiatives are being implemented to strengthen cyber security across critical sectors such as power, transport, and banking, ensuring their continuous and secure operation.The Indian Computer Emergency Response Team (CERT-In) and the National Critical Information Infrastructure Protection Centre (NCIIPC) undertake cyber security audits under the Information Technol..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?