Asirvad Microfinance Ltd has securitised (by direct assignment) microfinance loans worth Rs.262 crore in a deal with a leading public sector bank in India.
Asirvad Microfinance Ltd is India’s 4th largest NBFC MFI and a subsidiary of Manappuram Finance Ltd.
The announcement from Asirvad has come at a time when the microfinance industry in India is facing stress due to the covid induced lockdowns during the second wave of the pandemic.
In May 2021, the company had raised US$ 15 Million Loan from WorldBusiness Capital Inc. based in Hartford, Connecticut (USA).
Raja Vaidyanathan, Managing Director, Asirvad Microfinance Ltd., said, “This deal, following closely on the heels of an ECB transaction with the US based World Business Capital, reaffirms the confidence that leading lending institutions have in India’s microfinance sector and its prospects for growth.”
The loan availed will help Asirvad in expanding its business and providing small loans to low-income women business owners in rural areas to start and expand their income-generating business.