Press Release: Grameen Credit Agricole Foundation Grants a $3 Million Euros Loan to Pahal in Favour of Financial Inclusion in India
“With this new partnership, the Grameen Credit Agricole Foundation strengthens its action in favour of financial inclusion and women empowerment in India. This funding is our first direct exposure in India, using the External Commercial Borrowing channel recently opened by the Reserve Bank of India. The company has shown on many occasions its resilience and we trust that Pahal, its clients and the whole industry are recovering fast from this crisis,” said Caroline Brandt, Senior Investment Manager at the Foundation.
“Grameen Credit Agricole Foundation’s debt line is a validation of Pahal’s business model and displays the resilience of the microfinance sector in India,” said Kartik Mehta, Co-Founder and Managing Director. “We at Pahal are determined to be a part of financial inclusion agenda for the vulnerable sections of the society. This money will be used to onlend to the women borrowers of Pahal,” added Purvi Bhavsar, Co-Founder and Managing Director.
The Foundation’s financial support comes at a time when the microfinance sector is emerging out of the Covid-19 crisis. After lockdown relaxation, the anticipated microcredit demands are expected to trigger swift recovery of the sector. Pahal, in partnership with the Foundation, will support its borrowers to help them restart their businesses.