HDFC Bank Will Give Loans To Small Traders
HDFC Bank will give loans to small traders, to strengthen the MSME sector, the bank has started a loan facility of 100 million dollars.
HDFC Bank, the largest and leading private sector bank, has started a $100 million loan facility for Micro, Small, and Medium Enterprises (MSMEs) in India.
This loan facility will provide loans to small businesses to raise capital, who need financial support for their digitization and recovery from the impact of the pandemic.
This loan facility has been started by HDFC Bank especially for new customers and under this, a target has been set to give loans to at least 50 percent of women entrepreneurs.
This loan facility has been started in partnership with HDFC Bank, Mastercard, US International Development Finance Corporation (DFC), and US Agency for International Development (USAID).
Covid-19 had a very bad effect on small traders.
Rahul Shukla, Group Head, Commercial and Rural Banking, HDFC Bank said, “HDFC Bank has joined hands with Mastercard, USAID, and DFC in an effort to support small businesses in India.
MSMEs are the backbone of the Indian economy and the current pandemic has hit it badly.
We believe this partnership will not only help increase credit but also provide them with advice and support in terms of modernizing and digitizing their businesses.
“We are committed to encouraging Women Entrepreneurs in India and being a worthwhile partner in their entrepreneurial journey.”
Under this partnership, HDFC Bank will endeavor to connect small businesses and women entrepreneurs to the digital network.
Apart from this, about 5 percent of women entrepreneurs will be given the benefit of loan facilities.
In addition, through its existing collaboration with the Indian CII (Confederation of Indian Industry) and the Confederation of All India Traders (CAIT), Mastercard will provide training and education to small business owners for their digitization.
At the same time, Mastercard will also help them to increase their revenue.
This is part of Mastercard’s $33 million (Rs 250 crore) plan to help India’s small businesses recover from the impact of COVID-19.
In addition, DFC and USAID will provide loan facilities to small business owners by removing the risk on HDFC Bank loans.
