The Challenge
Across India, millions of women in the informal economy, often excluded from affordable finance, face rising threats as climate disasters wipe out farms, livestock, and small businesses. Without timely access to capital, women lose both income and creditworthiness, undermining decades of progress in financial inclusion. Existing government and financial institution schemes, while useful, fall short of addressing the combined pressures of immediate relief, long-term adaptation, and resilience building. There is an urgent need for an innovative, scalable solution that ensures continuity of livelihoods while empowering women to withstand and recover from climate risks.
Blended Finance in Action
A blended finance facility has been structured to bridge the financing gap by blending commercial and philanthropic capital into a sustainable financing facility that supports women in the informal economy.
TBFC has worked with a leading women’s organization over the last year to structure the facility which is designed to provide returnable grants for immediate relief post-climate events to restore livelihoods, recycling repayments to prepare for future crises; FLDG-backed debt that enables women to adapt, diversify, and adopt climate-resilient technologies such as solar pumps, EVs, biogas; and technical assistance to strengthen financial literacy, digital tools, and climate resilience. The facility in the initial phase aims to support women across 2-4 states with a vision to scale to over 500,000 women nationwide within 7-10 years. Its replicable structure positions it as a model for broader adoption by financial institutions and a key lever for advancing India’s women’s economic empowerment agenda. TBFC is currently working closely with this organization to fundraise and support in implementing the facility.
