The Asian Development Bank (ADB) has signed a $100 million loan agreement with Five-Star Business Finance Limited (FBFL) to expand access to micro, small, and medium-sized enterprise (MSME) loans for women borrowers from lower-income groups in India. This initiative, called the Five-Star Social Loan Improving Access to MSME Finance for Lower-Income Women Borrowers Project, aims to grow FBFL’s MSME loan portfolio specifically targeting women entrepreneurs.
Women entrepreneurs in India, particularly from lower-income backgrounds, face systemic barriers including lack of collateral, informal income sources, and limited financial literacy. The project seeks to directly address these challenges and enhance financial inclusion, according to ADB Country Director for India, Mio Oka.
FBFL Chair and Managing Director Lakshmipathy Deenadayalan highlighted that ADB’s funding recognizes the company’s two decades of supporting small businesses and helping self-employed individuals transition from informal to formal finance. The partnership is expected to advance shared objectives of improving livelihoods among financially excluded populations.
The loan will be implemented under a social finance framework aligned with international standards, subject to external verification and ADB technical assistance. It will also help FBFL integrate gender-responsive practices into its operations, including customized customer engagement, digital financial literacy programs, and inclusive workplace training.
FBFL has a strong presence in tier 3 cities and underserved segments, operating more than 700 branches across India and serving over 400,000 borrowers. The company has a track record of supporting women borrowers and fostering financial inclusion through its MSME lending.
ADB, founded in 1966 and owned by 69 members including 50 from the Asia-Pacific region, is a leading multilateral development bank promoting inclusive, resilient, and sustainable growth. It leverages innovative financial tools and strategic partnerships to address complex challenges, improve infrastructure, and transform lives across the region.
