As Indian NBFCs see a $9B ECB inflow in FY24, SMFG India Credit stands out with a risk-managed strategy to channel global capital toward grassroots credit growth.
In a significant move that aligns global banking confidence with India’s expanding credit landscape, SMFG India Credit has successfully raised USD 175 million via External Commercial Borrowing (ECB). The syndicated facility has been arranged by Standard Chartered Bank and CTBC Bank, two well-established global financial institutions.
Fully hedged against foreign exchange and interest rate risks, the funds are earmarked for expanding SMFG India Credit’s lending portfolio. With operations spread across 670 towns and over 70,000 villages, powered by a 25,000-strong workforce and 1,000 branches, the NBFC aims to further deepen financial access for India’s underserved and unserved communities.Mr. Pankaj Malik, Chief Financial Officer, SMFG India Credit, noted, “This syndicated loan facility is a strong signal of trust from global banking partners. It reflects SMFG India Credit’s financial prudence and our clear roadmap for inclusive credit. This capital infusion will enable us to enhance our lending capacity, responsibly scale our operations, and support economic participation across India’s rural and semi-urban geographies.”
The transaction arrives at a time when India’s NBFC sector is witnessing increasing access to offshore credit. According to the Reserve Bank of India, Indian NBFCs mobilized over $9 billion through ECBs in FY24. However, few players offer the risk-managed maturity structure and foreign lender appeal that SMFG India Credit brings to the table.
A wholly owned subsidiary of Japan’s Sumitomo Mitsui Financial Group (SMFG) — a Global Systemically Important Bank (G-SIB) with a market cap of $93.5 billion as of December 2024 — SMFG India Credit carries forward the group’s high credit rating standards, governance ethos, and long-term outlook.
The facility has been fully hedged using a combination of interest rate and currency swaps, reflecting treasury discipline that reduces exposure to global macro volatility. This is particularly critical as India navigates through an interest rate recalibration phase both domestically and globally.
SMFG India Credit (formerly Fullerton India Credit) is a Reserve Bank of India-registered NBFC-ICC. Alongside its subsidiary SMFG Grihashakti, it serves a broad spectrum of borrowers, offering SME loans, personal loans, home improvement loans, commercial vehicle loans, loans against property and shares, and rural livelihood advancement credit.
Its strength lies in granular, digitally-enabled lending, targeting segments often excluded from traditional banking. This includes women entrepreneurs, first-time borrowers, micro-retailers, and rural families. SMFG India Credit’s lending model integrates credit risk analytics, digital onboarding, and post-disbursal support to minimize default risk while scaling reach.
Compared to players like Bajaj Finance, Tata Capital, and L&T Finance, SMFG India Credit stands out for its geographic saturation beyond metros, backed by a Japanese governance framework. It also aligns closely with the Government of India’s Digital India and Financial Inclusion missions.
This $175 million funding round also comes amid RBI’s regulatory push for transparency and capital adequacy in the NBFC sector. With Basel-III-aligned governance and asset diversification, SMFG India Credit is well-placed to emerge as a model NBFC under the new compliance framework.
Prittle Prattle News, featuring you virtuously, continues to highlight institutions shaping India’s financial empowerment. SMFG India Credit’s ECB raise is more than a capital deal; it’s a reaffirmation that rural credit expansion, when done with accountability and innovation, commands global trust.
To know more about SMFG India Credit, visit https://www.smfgindiacredit.com.
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