Kolkata: The Asian Development Bank (ADB) has provided a Rs 295 crore loan to Northern Arc Capital for onlending to the microfinance and the MSME sectors in India.
The rupee-denominated loan has been disbursed as part of ADB’s ongoing COVID-19 response, it said Monday. Northern Arc Capital will use it to extend loans proceeds and provide guarantees to financial institutions and individual borrowers.
ADB’s private sector operations department director Christine Engstrom said the loan project would support the efforts to kickstart credit flow to the informal economy, especially among microfinance borrowers and MSMEs.
Northern Arc Capital’s chief operating officer Bama Balakrishnan said the funding would help it design new debt product solutions for clients. “We will also utilize the investment as a catalyst to attract other investors into transactions that we structure and execute,” she was quoted as saying in a media statement.
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