Latest News | BIZ-L&T FINANCE

Mumbai, Mar 12 (PTI) L&T Finance Holdings on Tuesday said it will borrow USD 125 million (about Rs 1,038 crore) from the Japan International Cooperation Agency for on-lending to women and other segments.

The two entities have signed a financing pact, under which 40 per cent of the money will be allocated to women borrowers, while the rest will support farmers, micro, small and medium-sized enterprises (MSMEs) and loans to purchase new two-wheeler vehicles, including electric two-wheelers.

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The loan is being raised from JICA as part of a co-financing agreement with Asian Development Bank (ADB) in addition to USD 125 million it had raised from ADB in November last year.

LTFH's chief financial officer Sachinn Joshi said the agreement with JICA is a substantial step toward driving sustainability and positive business impact.

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"This long-term loan also helps us take forward our ongoing strategy of diversifying funding sources for the company," Joshi added.

JICA said poverty alleviation is a "pressing issue" as about 90 per cent of India's "impoverished population" resides in rural areas and the income growth rates are decreasing.

LTFH's chief sustainability officer Apurva Rathod said there is a "steady" economic growth in rural areas, but despite that, accessing financial services remains a challenge.

"A large percentage of marginal farmers lack formal access to credit, with women being disproportionately affected," Rathod said, adding that the lending activities will enhance economic resilience.

The LTFH scrip closed 1.40 per cent down at Rs 155.50 on the BSE.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)