The Asian Development Bank (ADB) has approved and signed a $100 million loan agreement with Five-Star Business Finance Limited (FBFL) aimed at widening access to finance for women-led micro, small and medium-sized enterprises in India.
In a statement, ADB said the funding will be used to support a project designed to grow FBFL’s MSME loan book for women borrowers, particularly those from lower-income groups. The initiative is expected to help address long-standing gaps in access to formal credit faced by women entrepreneurs across the country.
According to ADB, the funds will be channelled through a social finance framework that aligns with international standards. The framework will be independently verified with support from ADB’s technical assistance, ensuring transparency and accountability in how the financing is deployed.
In addition to expanding lending, the agreement will support FBFL in integrating gender-responsive practices across its operations. This includes more tailored customer engagement approaches, digital financial literacy programmes, and inclusive training within the workplace.
“Women entrepreneurs in India, particularly those from lower-income segments, face systemic barriers such as lack of collateral, informal income sources, and limited financial literacy,” said ADB Country Director for India Mio Oka.
FBFL focuses on providing finance to MSMEs in tier 3 cities and other underserved areas. The non-banking financial company has a track record of working with segments that often struggle to access traditional banking services, including women entrepreneurs. It currently operates through more than 700 branches nationwide and serves over 400,000 borrowers across India.
The latest loan agreement reflects growing efforts by development lenders to improve financial inclusion for women-led businesses in emerging markets.
About ADB
ADB is a leading multilateral development bank supporting sustainable, inclusive, and resilient growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.
