Empowering Rural India Through Climate Innovation

The Hero: Annapurna Finance

Annapurna Finance is one of India’s top five non-banking financial companies focused on microfinance (NBFC-MFIs), with a mission to uplift underserved communities through inclusive financial services. With a client base of over 2.9 million – 86% of whom are rural and 98% women – Annapurna has built a powerful platform for social and environmental impact.

Driven by the vision of its strong management team, Annapurna is pioneering green lending in a segment where it is rarely seen. Having headquartered in Odisha, a region increasingly vulnerable to climate change, Annapurna has made climate resilience a strategic priority. Annapurna has established a dedicated climate finance product team and is actively developing a suite of renewable energy, electric mobility and energy efficiency financing solutions tailored to rural and peri-urban India.

The Challenge: Financing the Green Transition for the Underserved

Climate lending in microfinance is notoriously difficult. Small ticket sizes, limited awareness, and operational complexity often deter financial institutions. But Annapurna is breaking the mold. With GCPF’s support, the company is scaling a multi-pronged green lending strategy that includes:

• Solar Rooftop Loans: Covering more than ten states, these loans help households and small businesses install solar systems. Annapurna offers long tenors (up to 7 years) to match savings with repayments, making clean energy affordable.
• Electric Mobility: Annapurna has launched an dedicated loan product catering to the buyers of electric 3 wheelers to accelerate EV adoption in semi-urban and rural areas.
• Solar Equipment & EE Appliances: Financing for solar water pumps, heaters, cold storage, and energy-efficient household appliances is being rolled out, targeting farmers and small entrepreneurs.
• Climate-Smart Agriculture (CSA): In the medium term, Annapurna plans to leverage GIS mapping and machine learning to help farmers adopt CSA practices, enhancing resilience to climate shocks.

The Impact: A Climate-friendlier, more Inclusive Future

Annapurna is poised to transform green finance in India’s microfinance sector. GCPF’s investment is not just financial—it includes tailored technical assistance to build internal capacity, develop vendor networks, and refine product strategies.

This partnership has achieved notable progress:

• As of 2025, Annapurna has financed over 700 solar rooftop installations (USD 4 million) and around 200 electric three-wheeler purchases.
• The goal is to finance about 1,400 EVs and 1,000 solar rooftop installations by 2025.
• GCPF support is enabling upgrades to institution’s climate risk assessment approach and ESG framework.

Why it matters

Annapurna’s story is one of courage, innovation, and deep local commitment. By bringing green finance to the last mile, it is not only reducing emissions but also improving livelihoods, enhancing energy access, and building climate resilience in some of India’s most vulnerable communities.

This is what climate finance looks like when it’s rooted in people, powered by purpose, and scaled through partnership.

Beyond the numbers