SK FINANCE LIMITED
Status: Approved investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer?
SK Finance Limited is a regulated NBFC primarily active in north-western India. The company provides asset-backed financing in the vehicle and MSME lending segments, targeting underserved entrepreneurs in rural and semi-urban areas. It currently serves 458,000 clients across 648 branches in 12 states.
What is our funding objective?
FMO's funding (USD 50 million in LCY) supports SK's portfolio growth, facilitating access to finance for underserved microentrepreneurs, and micro, small, and medium enterprises (MSMEs). Part of the funding is also allocated towards financing CNG vehicles, which produce lower emissions compared to petrol and diesel vehicles. The transaction has a 100% Reducing Inequalities Label and 50% Green Label.
Why do we fund this investment?
By partnering with SK, FMO reaches the underserved MSME segment in the rural and semi-urban areas of northwestern India, thereby contributing to the reduction of inequalities. Furthermore, by financing CNG vehicles, FMO contributes to lowering air pollution and greenhouse gas emissions, thereby contributing to climate action.
What is the Environmental and Social categorization rationale?
SK is categorized as an FI-C client, given the size and purpose of its portfolio loans. The company has no exposure to activities on FMO’s exclusion list, IFC Performance Standards (IFC-PS) triggered transactions, or high-risk sector exposures.
More investments
| Date | Total FMO financing |
|---|---|
| 5/25/2023 | INR 4100.00 MLN |
| 2/18/2025 | INR 2900.00 MLN |
| 6/21/2019 | INR 480.00 MLN |
- Website customer/investment
- https://www.skfin.in
- Region
- Asia
- Country
- India
- Sector
- Financial Institutions
- Publication date
- 7/18/2025
- Effective date
- 11/20/2025
- Total FMO financing
- INR 4450.00 MLN
- Funding
- FMO NV
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - C