USAID, DFC tie-up with Kotak Bank

USAID, DFC tie-up with Kotak Bank

Question : USAID, DFC tie-up with Kotak Bank for loan guarantee programme for women, small biz in India. Write the loan amount ?
a. 50 million dollar
b. 25 million dollar
c. 15 million dollar
d. None of the above
Ans. a.
Related facts —

  • USAID, DFC has recently(August 2021) tied-up with Kotak Bank for $50 mn loan guarantee for women, small biz in India.
  • USAID & DFC —
  • USAID stands for — United States Agency for International Development. While DFC is an US International Development Finance Corporation.
  • It is notable that Kotak Bank will be providing loans for on-lending to non-bank lenders operating in the MSME and microlending space.
  • The programme is likely to benefit 30,000 women borrowers and 7,500 MSMEs.
  • At least half of the loans are earmarked to be given to women-led or women-managed MSMEs, or MSMEs that employ a certain percentage of women or that produce a good or service that disproportionately benefits women.
  • The program will be supported by Chennai-based NBFC Vivriti Capital, which will provide a $1 million first loss guarantee, and also extensive analytical and sourcing support through debt platform Credavenue.
  • DFC will provide KMB with a ‘pari passu’ guarantee, which is financially sponsored by USAID, of up to 50 per cent of the remaining $24.5 million loan.

Link:
https://www.thehindu.com/business/usaid-dfc-to-give-kotak-bank-50-mn-loan-guarantee-to-boost-lending-to-women-msmes/article36023970.ece