IFC Provides $150M Loan to SBI to Boost Rural Women’s Farm Finance

The International Finance Corporation (IFC), the private-sector arm of the World Bank Group, has extended a $150 million social loan to the State Bank of India (SBI) aimed at increasing agricultural financing for rural women across the country. This funding is expected to benefit approximately 864,000 women involved in various agricultural activities including crop farming, animal husbandry, fisheries, and food processing.

According to an official press release issued by IFC on Friday, the majority of the loan, up to 90 percent, will be directed toward women who borrow through Self-Help Groups (SHGs). The remaining portion will support women entrepreneurs who are advancing to individual Micro Enterprise Loans through SBI’s Svayam Siddha Scheme. This program is designed to facilitate the economic empowerment of women by providing them with easier access to credit facilities tailored for agribusinesses.

This $150 million credit line marks several firsts for IFC in India. It is the organization's initial loan extended to a public-sector bank in the country and also represents IFC’s debut investment in a state-owned financial institution. Alongside the loan, the collaboration introduced IFC’s first cross-currency swap under a newly signed International Swaps and Derivatives Association (ISDA) Master Agreement. This financial instrument has enabled SBI to become IFC’s first domestic swap counterparty within India and also its first local swap partner in the South Asian region.

The cross-currency swap plays a crucial role in deepening IFC’s local currency financing framework within India. It provides a mechanism for sourcing long-term Indian rupee funding, which is vital for investments in sectors such as infrastructure, agribusiness, and financial services. The swap arrangement helps borrowers manage foreign exchange risks, offering greater certainty for investments that contribute to economic development.

Over the last three years, IFC has injected approximately ₹300.4 billion (around $3.7 billion) into the Indian market through US dollar-Indian rupee cross-currency swaps. This new partnership with SBI is expected to further expand the availability of long-term rupee financing, supporting projects that improve productivity, enhance competitiveness, and generate employment.

Roshika Singh, IFC’s principal country officer, highlighted the importance of private sector growth for India’s overall development. She stated, "India’s growth depends on the strength of its private sector and its ability to create more and better jobs, and this partnership is a key step in that direction." Singh also emphasized that SBI’s extensive reach will enable IFC to extend capital into areas that would otherwise be challenging to access, ranging from rural SHGs to rupee markets that fuel private sector expansion.

On the SBI side, Satyendra Kumar Singh, the bank’s deputy managing director, chief credit officer, and chief sustainability officer, expressed optimism about the collaboration’s impact. He noted that the partnership would broaden financial access for women-led SHGs and rural entrepreneurs, while simultaneously contributing to the growth of domestic financial markets through local currency financing.

This initiative aligns closely with the World Bank Group’s AgriConnect programme, which focuses on expanding financial services for women engaged in agricultural value chains. By targeting women in farming communities, the program aims to strengthen livelihoods, promote gender equality, and support sustainable agricultural development in India’s rural regions.

The collaboration between IFC and SBI represents a strategic effort to combine international development expertise with the reach of a major public-sector bank. Together, they seek to address the financing gaps that rural women entrepreneurs face, ultimately fostering inclusive growth and economic resilience in India’s agricultural sector.