The U.S. International Development Finance Corporation (DFC) has invested $12 million in Gujarat-based Pahal, a microfinance organisation, to support financial inclusion in rural and semi-urban India. According to the terms of the deal, Pahal will have access to a $12 million loan through External Commercial Borrowing (ECB) for a maximum of eight years. It will utilise the money to increase the scope of its microloan portfolio, focusing especially on women business owners in Gujarat. Purvi Bhavsar and Kartik Mehta co-founded the company, which has an AUM of Rs 1,600 crore.
Purvi Bhavsar, co-founder and managing director of Pahal, "this partnership will increase the capital available for women-owned and led businesses, addressing the financing barriers they frequently encounter." While Mehta added that DFC's assistance to Pahal in this endeavour will significantly advance our vision and objective of uplifting the weaker members of society.
Pahal, an Ahmedabad-based non-banking financial company that offers microfinance services to low-income households, is registered with the Reserve Bank of India. More than 5,000 active clients are served by its more than 300 outlets and more than 2,500 workers. "DFC is pleased to assist greater financial access in India, particularly for women business owners in rural and semi-urban areas. James Polan, Vice President of DFC's Office of Development Credit, stated that this loan would help increase microfinance lending to women at the bottom of the economic pyramid.
