The Asian Development Bank (ADB) and SK Finance Limited have signed a senior secured loan agreement worth up to $100 million. This funding aims to enhance financial access for women-owned micro, small, and medium-sized enterprises and support the financing of electric vehicles (EVs) to promote sustainable transport in India.
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SK Finance is one of the country’s leading nonbank financial companies that focuses on vehicle and MSME loans. ADB’s support, to be disbursed in two tranches, will strengthen the company’s capacity to meet the growing credit demand of its clients. At least 20% of ADB’s financing of $100 million will be allocated to EV financing and up to 80% will be utilized for onlending to to micro, small, and medium-sized enterprises (MSMEs), with a significant portion allocated to women-owned or operated businesses.
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“ADB is committed to promoting financial inclusion and supporting India’s ambitious climate goals,” said ADB Director General for Private Sector Operations Suzanne Gaboury. “This project aligns with ADB’s strategic priorities by expanding access to finance for underserved segments, including women entrepreneurs, and facilitating the country’s transition to electric mobility. This will play a key role in reducing carbon emissions and improving air quality.”
MSMEs in India employ over 110 million workers, contributing 30% to the gross domestic product and 40% to exports. However, access to finance remains a major barrier to their growth, especially for women-owned businesses. The financing gap is estimated to exceed $1 trillion annually.
The transition to EVs is crucial for India’s climate goals as transport accounts for 12% of the country’s energy-related carbon dioxide emissions. India’s EV market is rapidly evolving—over a million vehicles registered in 2023 and two- and three-wheelers make up 94% of total sales. EVs are a key technology pathway for India to reduce emissions, improve air quality, while fostering economic growth and increasing global competitiveness.
“We are thrilled to partner with ADB in this transformative project,” said SK Finance Limited’s Managing Director and Chief Executive Officer Rajendra Kumar Setia. “With ADB’s support, we will not only expand our outreach to underserved women entrepreneurs but also accelerate our efforts in electric vehicle financing, driving both economic growth and environmental sustainability.”
Founded in 1994, SK Finance has 615 branches as of September 2024, more than half of which are in rural and semi-urban areas. This allows the company to meet the financing needs of local communities and small businesses, particularly for light commercial vehicles, tractors, and two-wheelers used for transporting and delivering goods and services.
About ADB
The Asian Development Bank (ADB) is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. It assists its members and partners by providing loans, technical assistance, grants, and equity investments to promote social and economic development. Established in 1966, it is owned by 69 members—49 from the region.
