On December 21, 2020 The Asian Development Bank (ADB) signed a $40 million(around Rs 295 crore) loan to Northern Arc Capital Ltd(NACL) for on lending to microfinance borrowers, Micro, Small, and Medium Enterprises (MSMEs) and affordable housing finance companies in India who are facing difficulties to attract debt funding from investors.
- As part of ADB’s ongoing COVID-19 response, this rupee denominated loan is given to NACL.
Purpose of the loan– To support the livelihoods of microfinance borrowers, MSMEs and affordable housing finance companies
NACL, apart from onlending loan proceeds will also provide guarantees to financial institutions and individual borrowers.
Benefits of the Project & Funding
i.The project will provide additional support to the ongoing efforts of Indian govt to
kickstart credit flow to the microfinance borrowers and MSMEs of the economy.
ii.The funding will help NACL to design new debt product solutions for clients.
Key Info about NACL:
i.NACL, a Non-Banking Finance Company(NBFC) connects NBFCs, microfinance institutions and housing finance companies to mainstream financers to debt fundraising through a variety of products.
ii.This allows small and mid-sized NBFCs to strengthen their existence and improve access to financial services for many financially excluded households in India.
iii.The innovative solutions of NACL have enabled around 250 partners(serving nearly 60 million customers across 680 districts across India) to access funding from reputed investors.
Recent Related News:
On September 11, 2020 In order to help sustain poultry farming operations, rural livelihoods and food security in India during the COVID-19 pandemic, Asian Development Bank (ADB) has signed an agreement for USD($) 15 million debt financing through the subscription of nonconvertible debentures for Suguna Foods Private Limited (Suguna), one of India’s largest poultry broiler enterprises, in equivalent Indian rupees.
About Northern Arc Capital Ltd(NACL):
Managing Director(MD) and Chief Executive Officer(CEO)– Dr. Kshama Fernandes
Headquarters– Chennai, Tamil Nadu