Gurugram: Annapurna Finance has partnered with British International Investment (BII) and FinReach Solutions to increase credit access to Micro and Small Enterprises (MSEs) in India. This agreement marks the first instance of a Development Finance Institution (DFI) offering a credit guarantee to an NBFC-MFI in India.
The collaboration will enable Annapurna Finance to extend loans worth INR 100 crore to over 4,000 underserved MSEs, particularly in regions with limited access to traditional financial services, like Eastern India. BII’s credit guarantee will reduce the lending risk for Annapurna Finance, facilitating credit extension to MSEs that typically struggle to secure loans.
The scheme aims to enhance financial inclusion, promote entrepreneurship, and support job creation by enabling small businesses to scale. FinReach Solutions played a critical role in facilitating the credit guarantee arrangement.
Annapurna Finance and BII leaders emphasized the partnership’s potential to foster sustainable growth and financial inclusion. By supporting small enterprises, the initiative is expected to contribute to economic development and improve livelihoods in underserved areas.
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