Original disclosure @ DFC website
Updated in EWS Oct 30, 2022
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According to DFC documents, the proposed The project will support the expansion of Sonata’s microfinance portfolio, serving rural women borrowers. This project is expected to have a highly developmental impact by expanding the availability of microfinance lending to women in India, as well as providing more expansive financial products to its micro-clients, primarily using the Grameen model of joint group lending(“JLG”).
However, in addition to JLG structures,15% of loans will be to individual women that have successfully repaid JLG loans and graduated to greater financing needs. The Project will support microfinance lending to a projected 1.44 million individuals, who are all women and mostly low-income and rural individuals. The microfinance lending gap in India is estimated at $9 billion, while the gap for women microenterprises is estimated at $567 million. This project aligns with the Government of India’s National Mission for Financial Inclusion and the RBI’s National Strategy for Financial Inclusion, which envisions comprehensive financial inclusion for the nation's poor, underbanked and unbanked.
The Project has been reviewed against the DFC’s 2020 Environmental and Social Policies and Procedures manual (“ESPP”) and has been determined to be categorically eligible. Loans for the purposes of microfinance lending are screened as Category C projects for the purpose of environmental and social assessment in accordance with DFC’s ESPP.
US Sponsor: WorldBusiness Capital, Inc.
Foreign Sponsor: Creation Investments Social Ventures Fund II, PROPARCO, SIDBI Trustee Company Limited
|Private Actor 1||Private Actor 1 Role||Private Actor 1 Sector||Relation||Private Actor 2||Private Actor 2 Role||Private Actor 2 Sector|
|-||-||-||-||Creation Investments Capital Management||Investor||-|
|-||-||-||-||Sonata Finance Private Limited||Client||-|
|-||-||-||-||WorldBusiness Capital Inc.||Investor||-|
No contact information provided at the time of disclosure
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