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Asirvad Microfinance, India’s fourth largest NBFC-MFI and a subsidiary of Manappuram Finance, has securitised (by direct assignment) microfinance loans worth ₹262 crore in a deal with a leading public sector bank in India.
In a press release, the Chennai-based MFI said that the transaction comes at a time when the microfinance sector in India has faced higher stress from lockdowns imposed after the onset of the second wave of the pandemic.
“This deal, following closely on the heels of an ECB transaction with the US based WorldBusiness Capital, reaffirms the confidence that leading lending institutions have in India’s microfinance sector and its prospects for growth,” Raja Vaidyanathan, MD, Asirvad Microfinance was quoted in the release.
In May 2021, Asirvad raised a $15 million loan from US-based WorldBusiness Capital Inc.
The proceeds from the securitised loan will enable Asirvad to expand its business of providing small loans to low-income women business owners in rural areas to start and expand their income-generating business.
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