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Mr Saito Mitsunori, Chief Representative of JICA India, and Mr Sachinn Joshi, CFO of LTF, ink the pact at the head office of L&T Finance in Mumbai.
L&T Finance inks pact with JICA for sustainability-focussed financing L&T Finance (LTF) has signed a pact with the Japan International Cooperation Agency (JICA) for USD 125 million to support financing in rural and peri-urban areas in India, particularly for women borrowers. Under this pact, LTF will source a USD 125 million loan from JICA for onward lending to borrowers in India. At least 40% of the proceeds will be allocated for women borrowers, while the rest will be allocated to support farmers, MSMEs, as well as for loans to purchase new two-wheelers, including electric two-wheelers. The collaboration with JICA resonates deeply with LTF’s commitment to driving sustainability and positive business impact. LTF views this partnership as a substantial step towards bridging the financial gap and fostering inclusive nationwide economic growth through sustainability focused loans.
This long-term loan also helps LTF to realise its strategy of diversifying funding sources. By concentrating on lending in rural and peri- urban areas of lagging states, LTF strategically aligns its goals with those of India’s Ministry of Rural Development. In November 2023, LTF had sourced a USD 125 million loan from the Asian Development Bank (ADB).
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