The International Finance Corporation (IFC), a member of the World Bank Group, has committed a $400 million loan to Bajaj Finance to boost electric vehicle (EV) sales and support energy-efficient consumer goods in India. This funding is part of Bajaj Finance's $1 billion fundraising plan.
This funding is part of Bajaj Finance's $1 billion fundraising plan and aims to increase competitiveness in the climate finance market, support India's climate goals, and promote financial inclusion.
The loan aims to expand access to finance for customers purchasing EVs, including two-wheelers, three-wheelers, and four-wheelers, as well as energy-efficient appliances.
The initiative also focuses on supporting women-owned microenterprises and women micro-borrowers. The funding will promote financial inclusion by ensuring that more women have access to the necessary resources to start and expand their businesses.
This partnership is expected to quadruple Bajaj Finance's climate loan portfolio to $600 million by 2027, contributing to India's net-zero goals.
The funding will increase competitiveness in the climate finance market and promote financial inclusion.
Sandeep Jain, CFO & COO of Bajaj Finance, highlighted that responsible business practices driven by their ESG principles are foundational to their operations.
Imad N Fakhoury, Regional Director for South Asia at IFC, mentioned that accelerating climate financing is crucial for India to meet its net-zero goals and that this investment will inspire other NBFCs and investors to expand their financing for energy-efficient solutions, e-mobility, and microfinance.
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