Shriram Transport Finance secures $250 mn funding from US govt's DFC

The company will use the money as part of its social finance framework to create employment and to give loans to small businesses

Shriram Transport Finance Company (STFC) has secured long-term funding of $250 million from the International Development Finance Corporation (DFC), the US government’s development finance institution

STFC is part of the Shriram Group and it is India’s largest commercial vehicle financer. It is getting the external commercial borrowing (ECB) as a fixed-rate 10-year loan under a social finance framework.

The company said the DFC funding will be used for vehicle financing for commercial purposes, alternate fuel financing, employment generation, loans for small businesses, specifically for women entrepreneurs and socially and economically backward communities in India. Besides the DFC loan, STFC has successfully raised