Pahal Financial Services Secures USD 12 Million Loan from DFC to Support Women Entrepreneurs
Sep 29, 2023
BusinessWire India
Ahmedabad (Gujarat) [India], September 29: Pahal Financial Services Pvt. Ltd. (Pahal), a leading Microfinance Institution dedicated to promoting financial inclusion, is thrilled to announce its collaboration with the U.S. International Development Finance Corporation (DFC), resulting in a substantial US$12 million investment aimed at advancing financial inclusion efforts in rural and semi-urban regions of India.
Under the terms of the agreement, Pahal will access a US$12 million loan for up to 8 years, utilizing the External Commercial Borrowing (ECB) route.
This strategic investment will be dedicated to expanding the microfinance loan portfolio, with a specific focus on women entrepreneurs in rural and semi-urban areas within India. Pahal has already empowered more than a million women entrepreneurs at the grassroots level, and this loan will further extend support to many more women.
Kartik Mehta, Co-founder and Managing Director of Pahal, commenting on this transaction stated, “We believe that financial inclusion is a fundamental driver of poverty alleviation and economic development. Through our partnership with DFC, we aim to provide rural and semi-urban women at the base of the socio-economic pyramid with the resources they need to build better lives for themselves. DFC’s support to Pahal in this endeavour will go a long way in supporting our vision and mission of elevating the vulnerable section of the society.”
Purvi Bhavsar, Co-founder and Managing Director of Pahal added, “We are dedicated to empowering vulnerable women entrepreneurs by equipping them with the essential tools, training, and resources needed for financial independence while also enhancing their ability to navigate unexpected challenges. Our ambitious objectives align with our collaborative efforts on the ground, ensuring a tangible and lasting impact. This partnership will expand the available capital for women-owned and led enterprises, addressing the financing barriers they often encounter.”
James Polan, Vice President of DFC’s Office of Development Credit shared, “DFC is proud to support increased access to financing in India, especially among women entrepreneurs in rural and semi-urban areas. This loan will support the expansion of microfinance lending to women at the base of the pyramid.”
The funds will enhance access to financial services, promote financial literacy, and contribute to the development of a more inclusive financial ecosystem in rural India. This partnership underscores the shared commitment of Pahal and DFC to empower underserved communities and address the financial gap in India's rural and semi-urban areas contributing to SDGs 1, 5 and 8.
Pahal has also been actively engaging with women with non-lending initiatives, including but not restricted to insurance services, financial and digital literacy camps, and climate change preparedness studies to name a few.
Both Pahal and DFC are dedicated to promoting sustainable, inclusive economic growth, and this US$12 million investment represents a significant step toward achieving that goal in one of the world's most populous and dynamic countries.
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