Chennaidigital debt platform based onraised 10 million dollars indebted to we-based Calvert Impact Capital via external commercial borrowing (ECB).
According to the company, this is Calvert Impact Capital’s largest debt investment in India to date. Northern Arc will deploy funds to loans to financial institutions as well as direct loans to retail customers and mid-sized businesses.
Bama Balakrishnan, Deputy Managing Director of Northern Arc, noted,
“The partnership with Calvert Impact Capital is long-term and multidimensional, helping both organizations achieve common goals in terms of impact and growth. This includes helping small businesses and promoting gender equality, a cause strongly supported by both organizations. The longer duration of the installation will increase Northern Arc’s ability to finance MSMEs and households. “
Bama Balakrishnan, COO, Northern Arc
Underbanked customers, including low-income households and small businesses whose credit has dried up in recent months due to the pandemic, will be a key beneficiary of the proceeds, the company said. These borrowers will be served both directly by Arc Nord and through retrocessions to partner institutions.
Likewise, high-quality non-bank financial corporations (NBFCs), start-ups, and small and medium-sized enterprises (SMEs) that have strong business models but are facing a liquidity shortage will also benefit from this funding.
“Northern Arc has been instrumental in strengthening India’s debt capital markets for the benefit of organizations serving underbanked populations. Today more than ever, these companies and their clients benefit from access to a variety of sources of financing and from the relational approach of the Arc Nord model. As an investor, we benefit from leveraging the market and credit expertise of the Northern Arc team as we put capital to work to make an impact in India, ”added Daniel Ford, Manager of Investments, Calvert Impact Capital.
Northern Arc Capital Limited (formerly IFMR Capital Finance Limited) is a non-bank finance company that provides access to debt to underbanked individuals and businesses in India. Through a combination of capital, products and partnerships, Northern Arc and its subsidiaries have created a platform that connects millions of borrowers to major debt investors.
Since its inception, it has funded more than $ 12 billion to more than 200 partner organizations through 140 reputable national and global investors.