HDFC Bank, Mastercard, USAID commit $100-mn credit facility

HDFC Bank, Mastercard and USAID have committed $100-mn credit facility with the aim to expand lending to small businesses.

Key Points

• New credit facility will help small businesses that require financing for maintaining and growing their operations.
• The credit facility will also enable recovery by means of digitisation.
• It emphasises on providing support to women-led businesses. 50 percent of the credit facility will be used to lend such businesses.
• This partnership has been designed in a manner that, HDFC Bank will look beyond its existing customer base. It will provide at least 50 per cent of the credit facility for the new small business borrowers.
• HDFC bank has planned to achieve this goal by using its extensive nationwide branch network.

Mastercard-CII & CAIT collaboration

Mastercard has collaborated with Confederation of All Indian Traders (CAIT) and Confederation of Indian Industry (CII) to provide skills training and education to the owners of small business with their digitisation options and help them in growing their revenue by means of “Mastercard Centre for Inclusive Growth”. Mastercard has committed Rs 250 crore for this. DFC and USAID are also facilitating for the extension of credit facility by de-risking the lending by HDFC Bank to small business owners.

United States Agency for International Development (USAID)

USAID is an independent agency working under the United States federal government. The body is responsible for administering the civilian foreign aid and development assistance. It is one of the largest official aid agencies across the world. It accounts for about half of all U.S. foreign assistance.

Month: Current Affairs - October, 2021