The Asian Development Bank (ADB) and SK Finance Limited have signed a landmark agreement to provide a senior secured loan of up to $100 million, aimed at improving financial access for women-led businesses and boosting the adoption of electric vehicles (EVs) in India.
SK Finance, one of India’s prominent non-bank financial companies, specializes in loans for vehicles and micro, small, and medium-sized enterprises (MSMEs). With ADB’s backing, the company will enhance its ability to meet the increasing demand for credit from its clients. The loan will be disbursed in two stages, with a focus on both EV financing and MSME support. At least 20% of the funding will be allocated to financing electric vehicles, while up to 80% will be used for onlending to MSMEs, including a notable portion directed towards businesses owned or operated by women.
Suzanne Gaboury, Director General for Private Sector Operations at ADB, emphasized the significance of the project: “ADB is committed to promoting financial inclusion and supporting India’s ambitious climate goals. This project aligns with ADB’s strategic priorities by expanding access to finance for underserved segments, including women entrepreneurs, and facilitating the country’s transition to electric mobility. This will play a key role in reducing carbon emissions and improving air quality.”
Rajendra Kumar Setia, Managing Director and CEO of SK Finance, also spoke positively about the partnership: “We are thrilled to partner with ADB in this transformative project. With ADB’s support, we will not only expand our outreach to underserved women entrepreneurs but also accelerate our efforts in electric vehicle financing, driving both economic growth and environmental sustainability.”
Founded in 1994, SK Finance operates 615 branches across India, with more than half of them located in rural and semi-urban areas. This wide network enables the company to meet the needs of local communities and small businesses, offering financing for light commercial vehicles, tractors, and two-wheelers that are essential for transporting goods and services.
About ADB
The Asian Development Bank (ADB) works towards a prosperous, inclusive, resilient, and sustainable Asia and the Pacific. It focuses on eradicating extreme poverty and promoting social and economic development by providing loans, technical assistance, grants, and equity investments. Established in 1966, ADB is owned by 69 members, 49 of which are from the region.
