Asirvad said it would receive the funds in three tranches of which euro 5 million has already been disbursed.
“The funds will help us in furthering our mission of creating an inclusive India, by extending credit to the micro-borrowers,” Raja Vaidyanathan, chief executive of Asirvad said.
Asirvad Microfinance has raised Rs 220 crore (Euro 25 million) of debt from Germany based social impact fund Invest in Visions GmbH for on-lending
. “We have been working extensively with Asirvad during the crisis and this deal is the cherry on the cake, providing longer-term reputational and access benefits apart from longer-term liquidity,” Northern Arc’s chief operating officer Bama Balakrishnan said.
Northern Arc Capital has arranged the finances for Asirvad, which is 95% owned by Manappuram Finance. Northern Arc said it has facilitated a total of Rs 500 crore worth of loans for Asrivad in the last five months from local and overseas investors including banks and development finance institutions.