NEW DELHI, INDIA (12 December 2025) — The Asian Development Bank (ADB) has signed a $100 million loan agreement with Five-Star Business Finance Limited (FBFL) to expand access to micro, small, and medium-sized enterprises (MSMEs) business loans to women borrowers from lower-income groups in India.
The Five-Star Social Loan Improving Access to Micro, Small, and Medium-Sized Enterprises Finance for Lower-Income Women Borrowers Project aims to increase the company’s MSME loan portfolio for women borrowers.
“Women entrepreneurs in India, particularly those from lower-income segments, face systemic barriers such as lack of collateral, informal income sources, and limited financial literacy,” said ADB Country Director for India Mio Oka. “This project directly addresses these challenges and promotes financial inclusion.”
“The funding support from ADB is an endorsement of our two decades of work in empowering small businesses and self-employed individuals by helping them transition from informal to formal finance,” said Chair and Managing Director of FBFL Lakshmipathy Deenadayalan. “We are confident that the ADB support will help achieve our collective objectives toward improving livelihoods for the financially excluded.”
The funds will be deployed under a social finance framework aligned with international standards, which will be externally verified with ADB’s technical assistance. It will also support FBFL in embedding gender-responsive practices within its operations, including tailored customer engagement, digital financial literacy programs, and inclusive workplace training.
FBFL finances MSMEs in tier 3 cities and beyond with a track record of serving underserved segments, including supporting women borrowers. The company operates through more than 700 branches across India and serves over 400,000 borrowers.
ADB is a leading multilateral development bank supporting inclusive, resilient, and sustainable growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.
