HDFC Bank has raised $500 million from International Finance Corporation (IFC) for onlending to underserved women borrowers.

Microloans will be extended to self-help groups (SHGs) and joint liability groups of women enrolled under the Sustainable Livelihoods Initiative (SLI) of HDFC Bank.

HDFC Bank's group head for Treasury, Arup Rakshit, said this is a longer duration credit facility which has been availed by the lender, and it will help in boosting the bank's efforts in empowering women. 

Women, especially microloan borrowers in semi-urban and rural areas, will have increased access to finance on the back of the funding. Finance will be extended for income generation, foster financial inclusion and socio-economic growth in the country.

Currently, non-banking financial companies (NBFCs), including microfinance institutions (MFIs) and small finance banks, are the major lenders to women seeking loans for income generation purposes. They account for approximately 65.7% of the total microfinance lending in India and collectively reach nearly 47 million clients with an aggregate gross loan portfolio of $31.6 billion as of 31 December 2023.

"Access to financial services is key to empowering women and strengthening the economy," said IFC regional director for South Asia Imad Fakhoury.

Over the last 20 years, IFC has made 650 microfinance investments totalling $6.2 billion.