Asirvad Microfinance Ltd Raises securitises loans worth

Asirvad Microfinance Ltd. Raises securitises loans worth Rs. 262 crore

 

Asirvad Microfinance Ltd., India’s 4th largest NBFC MFI and a subsidiary of Manappuram Finance Ltd., has securitised (by direct assignment) microfinance loans worth Rs.262 crore in a deal with a leading public sector bank in India. 

 

The announcement 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.  

 

Earlier in May 2021, the company has raised US$ 15 Million Loan from WorldBusiness Capital Inc. based in Hartford, Connecticut (USA).  

 

In a statement Mr. Raja Vaidyanathan, MD of Asirvad Microfinance Ltd., said, “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.”

 

Proceeds from the loan availed 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.  

Asirvad Microfinance Ltd Raises

 Asirvad Microfinance Ltd Raises US$ 15 Million Loan from WorldBusiness Capital

 

Asirvad Microfinance Ltd., India’s 4th largest NBFC MFI and a subsidiary of Manappuram Finance Ltd., has announced the closing of a US$ 15 million (Rs.111.15 crore), 7-year commercial loan from WorldBusiness Capital, Inc. based in Hartford, Connecticut (USA).

 

WBC’s loan is supported by the United States International Development Finance Corporation (DFC), the U.S. Government's developing finance institution. DFC partners with the private sector to finance solutions to the most critical challenges facing the developing world today. Proceeds from the loan availed under India’s ECB norms 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. The WBC loan will be Asirvad’s 3rd long-term facility denominated in foreign currency from an international financial institution.

In a statement released to the media, Mr. Raja Vaidyanathan, MD of Asirvad Microfinance Ltd. said, “This transaction with an international institution coming at this challenging juncture certainly gives a boost to the microfinance sector and reiterates the resilience Asirvad has always shown, and the speed at which it bounces back.”

Mr. Yogesh Udhoji, CFO, Asirvad Microfinance Ltd said, "With this funding, we look forward to helping rural women with economic opportunities to transform the quality of their lives.”

 

Rob Monyak, WBC’s Executive Vice President and Chief Lending Officer for Eurasia/Africa Lending, said, “We are excited to have the opportunity to support this dynamic financial institution that has constructed a viable business model to meet the needs of woman-owned enterprises operating in rural areas.  Asirvad plays a vital role in providing this underbanked segment of the market with access to the financing they need to establish and grow their businesses.

Asirvad Microfinance crosses Rs 5,000 crore in AUM

Asirvad Microfinance crosses Rs 5,000 crore in AUM

Asirvad Microfinance Limited, a subsidiary company of Manappuram Finance Limited, has achieved a significant milestone of Rs 5,000 crore in assets under management (AUM). In a statement released to the media, Mr.  Raja Vaidyanathan, Managing Director, said that “Asirvad has taken the route of multi-state business operations to achieve this milestone. The company is rated AA-/Stable by CRISIL, the highest credit rating in the MFI sector”.

Mr. V. P. Nandakumar, Chairman of Asirvad, said, “Asirvad has continuously improved its risk management practices by increased automation and digitization, in line with our objective to offer our services to clients at a competitive rate.”

Asirvad caters to over 21 lakh women members through its 1,037 strong branch network spread across 314 districts in 22 States. It has a well-diversified portfolio, with AUM exceeding INR 200 crore and more than 1 lakh members in 10 states. It has recently upgraded its entire operations through the e-onboarding process of clients at their doorstep. According to Mr. Vaidyanathan, after the up gradation, Asirvad aims to reduce the turn-around time to less than five days for its loan offering services. Further, the entire loan documentation process of the company is now digitized.

Asirvad Microfinance was acquired by Manappuram Finance Limited in February 2015. At the time, the company’s AUM was around Rs.300 crore.

is milestone. The company is rated AA-/Stable by CRISIL, the highest credit rating in the MFI sector”.

Mr. V. P. Nandakumar, Chairman of Asirvad, said, “Asirvad has continuously improved its risk management practices by increased automation and digitization, in line with our objective to offer our services to clients at a competitive rate.”

Asirvad caters to over 21 lakh women members through its 1,037 strong branch network spread across 314 districts in 22 States. It has a well-diversified portfolio, with AUM exceeding INR 200 crore and more than 1 lakh members in 10 states. It has recently upgraded its entire operations through the e-onboarding process of clients at their doorstep. According to Mr. Vaidyanathan, after the up gradation, Asirvad aims to reduce the turn-around time to less than five days for its loan offering services. Further, the entire loan documentation process of the company is now digitized.

Asirvad Microfinance was acquired by Manappuram Finance Limited in February 2015. At the time, the company’s AUM was around Rs.300 crore.