IFC Extends $150 Million Social Loan to State Bank of India to Support Rural Women Borrowers

The International Finance Corporation (IFC) has extended a $150 million social loan to the State Bank of India (SBI). This transaction marks IFC's first-ever credit line to a public-sector bank in India.

The funding is expected to support nearly 8,64,000 rural women engaged in agriculture and allied activities. The supported sectors include crop cultivation, animal husbandry, fisheries, and food processing.

According to the funding structure, nearly 90 percent of the financing will flow through women-led Self-Help Groups (SHGs). The remainder of the financing will support women entrepreneurs under SBI's Svayam Siddha Scheme.

Alongside the social loan, IFC and SBI have signed a derivative partnership under an ISDA Master Agreement. This agreement makes SBI IFC's first domestic swap counterparty in India and South Asia.

The swap arrangement is designed to strengthen IFC's ability to source rupee-denominated funding. It is also expected to reduce foreign exchange risk for borrowers operating in sectors such as infrastructure, agribusiness, and financial services.

Over the last three years, IFC has mobilized approximately ₹30,040 crore, equivalent to about $3.7 billion, through the dollar-rupee cross-currency swap market. The new partnership aims to further expand access to long-term local currency financing to support productivity, competitiveness, and job creation.

"This partnership between the International Finance Corporation and the State Bank of India marks an important milestone for financial inclusion in the country. By directing credit through women-led Self-Help Groups and the Svayam Siddha Scheme, the initiative provides targeted financial support to rural women in agriculture and allied sectors. Additionally, the domestic swap counterparty arrangement helps manage foreign exchange risks, paving the way for more resilient local-currency financing in key economic sectors." — Dr. Shishir Gupta, Founder & CEO, StartupLanes