The United States Agency for International Development (USAID) and Mumbai-based RBL Bank announced on Thursday a new loan portfolio guarantee that will facilitate up to USD 75 million for lending to small and medium enterprises (SMEs) operating in off-grid, solar rooftops, and energy efficiency sectors. This guarantee is the first of its kind between USAID and an Indian private sector bank which will support innovative solutions and business models to improve access to clean energy sources for electricity.
India needs more than USD 100 billion in energy investment per year until 2040 to meet its need for electricity. The U.S. Government supports the Government of India’s goal of providing 24×7 power to all Indian households by 2020 and lowering of greenhouse gas (GHG) emissions by 2030. Today’s loan guarantee signing advances that goal by making finance accessible for companies that are providing energy access to communities not connected to India’s electricity grid.