MSMEs to get $100 mn fund for digitisation

Chennai: In order to digitise micro, small and medium enterprises (MSMEs) and help women-owned businesses recover from the pandemic impact, a $100-million credit facility has been announced on Thursday through a four-way partnership forged among HDFC Bank, Mastercard, US International Development Finance Corporation (DFC) and US Agency for International Development (USAID.)

In order to connect the businesses to the networks that power the digital economy, HDFC Bank will reach beyond its current customer base to make at least 50 per cent of this credit facility available to new small business borrowers, with a goal of at least 50 per cent of the facility being used for lending to women entrepreneurs.

Through existing collaborations with the Confederation of Indian Industry (CII) and the Confederation of All Indian Traders (Cait), Mastercard will provide skills training and education to small business owners on their digitisation options. The Mastercard Center for Inclusive Growth will also help them to grow their revenue through a range of philanthropic training programmes.

DFC and USAID are facilitating the extension of the credit facility by de-risking HDFC Bank’s lending to small business owners. DFC’s investment supports its 2X Women’s Initiative, through which the agency invests in projects that are owned by women, led by women, or provide a product or service that empowers women. This programme is part of USAID’s Covid-19 response in India.

“Women have been disproportionately impacted by the Covid-19 pandemic, facing economic hardships that directly affect the livelihoods of their families and communities. Through this partnership, USAID will help facilitate access to finance and support the digitisation journey for women-owned small businesses,” said Veena Reddy, mission director, USAID India.