The International Finance Corporation (IFC) announced on Wednesday that it will collaborate with Bajaj Finance to invest $400 million of the $1 billion raised to support the latter’s efforts to empower women, expand its EV fleet, and promote energy-efficient consumer goods (EECG). Bajaj Finance will be able to increase financing options for consumers who choose to purchase EVs, including as two-, three-, and four-wheelers, and fortify its position in the EECG market thanks to the $400 million loan from IFC. More women-owned microbusinesses and female microborrowers would be able to receive funding and support from Bajaj Finance thanks to the cooperation.
Partnership Of FI and Bajaj Fin
- With the help of IFC’s $400 million loan, BFL will be able to finance energy-efficient consumer goods (EECG) and electric two-, three-, and four-wheelers, supporting India’s transition to a low-carbon future.
- Increasing support for women-owned microbusinesses will be the partnership’s main goal in order to empower women entrepreneurs and promote economic and financial inclusion.
- In order to bolster their sustainability efforts, Bajaj Finance expects climate loans to quadruple from around $150 million in 2024 to $600 million by 2027.
India is the world’s third-largest consumer of energy. With the rapid expansion of the country’s energy sector, it is expected that millions of households will get new cars, air conditioners, and appliances. By 2050, it’s expected that the demand for air conditioners will have increased ninefold, which would result in a significant rise in greenhouse gas emissions. The home appliance market is anticipated to grow at a rate of 7.35% annually and reach $59.2 billion in 2024.
Families use 26% of all energy and 25% of the country’s power, making EECG crucial to the country’s low-carbon growth trajectory. The adoption of EECG and funding are limited because only 26 percent of consumer goods that require a required star rating are rated as 5- or 4-star efficient.
With operations in more than 100 countries, IFC is the largest private sector development organization in emerging markets and a member of the World Bank Group. In fiscal 2024, the IFC gave a record $56 billion to financial institutions and private companies in developing countries.
