IFC Extends $150 Million Social Loan to SBI to Support 8.64 Lakh Rural Women

The International Finance Corporation (IFC) has extended a USD 150 million social loan to the State Bank of India (SBI) to support nearly 8.64 lakh rural women engaged in agriculture and related activities. The transaction marks the first credit line provided by the IFC to a public sector bank in India.

The International Finance Corporation (IFC) is an international financial institution and a member of the World Bank Group. It is the largest global development institution focused exclusively on the private sector in emerging markets.

Headquartered in Washington, D.C., the IFC aims to promote sustainable economic growth in developing countries by: Financing private sector projects and enterprises, Helping companies mobilize capital in international financial markets and Providing advisory and risk-management services to businesses and governments.

The funding will help women working across agricultural value chains, including crop cultivation, animal husbandry, fisheries and food processing. The initiative aims to improve access to finance for rural women and support their economic activities.

Around 90 per cent of the loan amount will be distributed through women-led self-help groups (SHGs). The remaining portion will support women entrepreneurs under SBI’s Svayam Siddha Scheme. The initiative is expected to help women strengthen their businesses and improve their livelihoods through better access to financial resources.

Along with the social loan, the IFC and SBI have also entered into a derivative partnership under an ISDA Master Agreement. Under this arrangement, SBI has become the IFC’s first domestic swap counterparty in India and South Asia.

The partnership is expected to strengthen the IFC’s ability to raise funds in Indian rupees and manage foreign exchange risks. This could help reduce currency-related risks associated with financing projects in sectors such as infrastructure, agribusiness and financial services.

The agreement marks a step towards expanding financial support for rural women and strengthening cooperation between the IFC and SBI. It also aims to improve access to funding for eligible borrowers while supporting development-focused activities in India.

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