fbpx 51195-001: Expanding Credit Delivery for Micro-, Small-, and Medium-Sized Enterprises Project | Asian Development Bank

India: Expanding Credit Delivery for Micro-, Small-, and Medium-Sized Enterprises Project

Nonsovereign (Private) Project | 51195-001 Status: Approved
Project Name Expanding Credit Delivery for Micro-, Small-, and Medium-Sized Enterprises Project
Project Number 51195-001
Borrower/Company Cholamandalam Investment and Finance Company Limited
Country India
Location Nation-wide
Type or Modality of Assistance
7537 Debt Security Ordinary capital resources USD 150.00 million Approved
Strategic Agendas Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector

Finance / Inclusive finance

Gender Equity and Mainstreaming Some gender elements
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Private Sector Financial Institutions Division
Responsible ADB Officer Taneja, Anshukant
Project Sponsor(s)
Objectives and Scope Chola will use the proceeds of ADB's debt financing to finance loans to MSMEs in semi-urban and rural areas in India, with up to 30% of ADB's funding for the Loan Against Property segment, and at least 50% of the funding targeting less-developed states.
Status of Development Objectives On-going.
Status of Operation/Construction On-going.
Linkage to Country/Regional Strategy The proposed transaction contributes to finance sector development by providing enhanced access to finance for MSMEs through an established NBFC, which is an important component of the finance sector in India. ADB''s Midterm Review also seeks to promote inclusive growth. Without access to formal financial services and credit, lower-income people or underserved segments of the population will be excluded from the growth process and its benefits. According to ADB''s country partnership strategy for India, 2018- 2022 and the country operations business plan, 2017- 2019, ADB''s nonsovereign operations will continue to focus on the finance sector and MSME development in India, which is also a high priority for the government.
Safeguard Categories
Involuntary Resettlement
Indigenous Peoples
Summary of Environmental and Social Aspects
Environmental Aspects The business activities of Cholamandalam have minimal or no adverse environmental impacts
Involuntary Resettlement Target customers for the MSME segment include micro and small manufacturers, service enterprises, wholesalers and distributors, agri-inputs stockists, traders and distributors of farm and MSME produce. Cholamandalam's established procedures for screening of all loans, for (i) the negative and exclusion list of activities and (ii) for potential land acquisition and involuntary resettlement impacts, will ensure that the proposed debt financing will not result in any involuntary resettlement impacts.
Indigenous Peoples The project is not expected to entail any significant impact on indigenous peoples.
Stakeholder Communication, Participation, and Consultation The primary stakeholders in the project are the MSME borrowers who will seek loans from Cholamandalam for their investment financing needs.
Timetable for assistance design, processing and implementation
Concept Clearance 13 Jun 2017
Credit Committee Meeting 16 Nov 2017
Approval 08 Dec 2017
Last PDS Update 12 Jun 2019

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