Public sector bank, Bank of India (BOI) and Sa-Dhan, an RBI-appointed self-regulatory organisation (SRO) for Microfinance and Impact Finance Institutions signed MoU to expand financing access to small, micro, and women-led enterprises and support national financial inclusion and Sustainable Development Goals (SDGs).
Key Highlights of MoU
- Nature of Agreement: Non-commercial arrangement
- Areas of Collaboration:
- Enterprise Finance for SHG and Non-SHG Members: Finance for women-led micro & small businesses, including Self-Help Groups
- Climate-Resilient Technologies & Green Financing: Co-lending & term loans for solar irrigation, energy-efficient equipment, sustainable agri-business models
- WASH (Water, Sanitation and Hygiene) Financing: Support for sanitation, clean water supply, SHGs in toilet construction, water filtration, and waste management
- Co-lending to MFIs: Collaboration with microfinance institutions for affordable, flexible financing
- Digital Transformation: Use of digital platforms for loan disbursement, tracking, and monitoring
- Financial Literacy & Awareness: Promote knowledge about government schemes and social security programmes among rural entrepreneurs
Implementation Highlights
- Sa-Dhan will:
- Identify SHG and non-SHG entrepreneurs needing finance
- Conduct capacity-building programs for Vitta Sakhis, SHG members, and rural entrepreneurs
- Support adoption of financial technology (fintech) solutions
- Bank of India will:
- Provide financing support
- Collaborate on digital monitoring of loan processes
- Promote awareness of financial services and government schemes
Significance of MoU
- Expands the reach of micro-loans, especially for women entrepreneurs
- Supports climate-smart agriculture and green technologies
- Improves access to finance for WASH sector enterprises
- Enhances financial inclusion in underserved rural and semi-urban areas
About Sa-Dhan
- Established as: First and largest association of community development finance institutions in India
- Purpose: Foster inclusive impact finance; strengthen microfinance sector
- Membership: ~220 members across 33 states/UTs and 646+ districts
- Includes: For-profit & not-for-profit MFIs, SHG promoting institutions, banks, rating agencies, capacity builders, etc.
- Outreach:
- ~63 million clients
- Total loan outstanding: ₹2,27,410 crore
- Recognition: National Support Organization (NSO) under National Rural Livelihood Mission (NRLM)