The credit facility will extend working capital loans to small businesses that need financing to support their digitization and recovery from the effects of the pandemic
Posted: October 26, 2021 at 9:00 a.m. EDT|Update: 1 hour ago
NEW DELHI, October 26, 2021 / PRNewswire / – HDFC Bank, Mastercard, the American International Development Finance Corporation (DFC) and the United States Agency for International Development (USAID) today launched a $ 100 million credit facility to promote and encourage small businesses India to digitize, while helping Indian businesses, especially those owned by women, recover from the economic impacts of the pandemic.
COVID-19 has had a disproportionate impact on small businesses, forcing many to close prematurely. Additionally, the accelerated shift to digital payments spawned by the pandemic means that small businesses must adapt to changing market dynamics and consumer preferences to remain competitive and retain customers.
The new credit facility aims to expand lending to small businesses that need financing to maintain and grow their operations, and enable recovery through digitization, with an emphasis on supporting women-led businesses.
“HDFC Bank is proud to partner with Mastercard, USAID and DFC to support small businesses in India. MSMEs are the backbone of India’s economy and the ongoing pandemic has affected their lives and businesses. This partnership, in our view, will not only provide credit, but also advise and help them modernize and digitize their businesses. The highlight of this initiative is our commitment to encourage women entrepreneurs in India and be a significant partner in their entrepreneurial journey ”, declared Rahul shukla, Group Leader – Commercial and Rural Bank, HDFC Bank.
“At USAID, we believe that gender equality and the empowerment of women are not only part of development, but at the heart of it. Women have been disproportionately affected by the COVID-19 pandemic, facing economic hardship that directly affects the livelihoods of their families and communities. This partnership, USAID will facilitate access to finance and support the digitization journey for small businesses and women-owned entrepreneurs to help them recover from the pandemic and reach their full potential, ”said Veena Reddy, Mission Director, USAID India.
“DFC is proud to support this partnership to increase funding for small businesses, particularly those owned by women, by India as they seek to digitize, modernize and become more resilient, ”said Algene Sajery, Vice President of the DFC External Affairs Office and Head of Global Gender Equity Initiatives. “This funding will allow women to India stay in the job market, succeed as entrepreneurs and become more economically self-sufficient, leading to post-COVID-19 economic stabilization, GDP growth and increased employment regardless of sex. “
“Partnerships that align the strengths of the private sector, government and philanthropy are essential to rebuilding stronger after the pandemic,” said Nikhil sahni, division president, South Asia, Mastercard. “Mastercard’s partnership with HDFC Bank, USAID and DFC is timely as it will provide much needed funding to support MSMEs on their digitization journey, building their resilience through greater participation in the digital economy. “
How will the partnership work?
- Enable small businesses and women entrepreneurs to connect to the networks that fuel the digital economy, HDFC Bank will go beyond its current customer base to make at least 50% of this credit facility available to new small business borrowers, with a target of at least 50% of the facility used for loans to women entrepreneurs. HDFC Bank will channel credit through its extensive network of branches nationwide.
- Thanks to existing collaborations with the Confederation of Indian Industry (CII) and the Confederation of All Indian Traders (CAIT), MasterCard will provide job training and education to small business owners on their digitization options. The Mastercard Center for Inclusive Growth will also help them increase their income through a range of nationwide philanthropic training programs. This initiative is part of Mastercard’s INR $ 33 million (250 crore) commitment to enable small businesses to India to recover from the impact of COVID-19.
- HDFC and USAID Make it easier to extend the credit facility by reducing the risk of HDFC Bank loans to small business owners. DFC’s investment supports its 2X Women Initiative, through which the agency invests in projects owned by women, led by women, or provides a product or service that empowers women. This program is part of USAID’s COVID-19 response in India as well as its global Women Economic Empowerment Fund initiative.
For more information, please connect to: www.hdfcbank.com.
About the American International Development Finance Corporation (DFC)
US International Development Finance Corporation (DFC) is the development bank of the United States. DFC partners with the private sector to fund solutions to the most critical challenges facing the developing world today. We invest in all sectors, including energy, health, critical infrastructure and technology. DFC also provides finance to small businesses and women entrepreneurs to create jobs in emerging markets. DFC investments adhere to high standards and respect the environment, human rights and workers’ rights. To learn more, visit www.dfc.gov.
USAID is the United States government’s premier international development agency and a catalyst for driving development results. USAID works to help improve lives, build communities, and advance democracy. USAID’s work advances the national security and economic prosperity of the United States; demonstrates American generosity; and helps countries progress along their development journey. To learn more, visit www.usaid.gov.
About Mastercard (NYSE: MA), www.mastercard.com
Mastercard is a global technology company in the payments industry. Our mission is to connect and power an inclusive digital economy that benefits everyone, everywhere by making transactions safe, simple, smart and accessible. Using secure data and networks, partnerships and passion, our innovations and solutions help individuals, financial institutions, governments and businesses realize their greatest potential. Our decency quotient, or DQ, drives our culture and everything we do inside and outside of our business. With connections in more than 210 countries and territories, we are building a sustainable world that opens up invaluable possibilities for all.
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SOURCE Mastercard India Services Private Limited
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