On Monday 24th May 2021, Manappuram Finance’s subsidiary Ashirvad Microfinance announced that it raised USD 15 Million, in an external commercial borrowing loan for seven years from the US-based WorldBusiness Capital Inc (WBC).

This loan raised from Ashirvad is supported by US International Development Finance Corporation, the company stated.

The loan is benefited under the ECB norms (External Commercial borrowing norms), it will authorize Ashirvad microfinance to extend its business of providing small loans to low-income women business owners in rural areas.

The company added that the loan raised by Ashirvad is a third-long term facility denominated in foreign currency from a financial institution from abroad.

Words from the investor  –

Rob Monyak, WBC’s Executive Vice President and Chief Lending Officer for Eurasia/Africa Lending, – “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 women-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.

The WBC was founded in 2003, having its headquarters in Harford, capital of Connecticut, USA. It’s a commercial financial institution that provides loans on flexible terms to aid small and medium-sized distribution, logistics, food processing, financial services, manufacturing and other services.

WBC focuses on the regions like the Caribbean and Latin America, Eastern and Central  Europe, Africa, Middle East and Africa.

About Ashirvad microfinance – 

Ashirvad was established and founded by Raja Vaidyanathan in 2007. The company focuses on providing microloans to poor or low-income household women.

In 2015 the company was acquired by Mannapuram and became its subsidiary. It has a customer base of nearly 26 Million, served by 7000 employees across 23 states and 1000 branches.

Mannapuram took over the company based in Chennai in February 2015, and currently owns  94.78 per cent stakes of Ashirvad Microfinance.

Words from the CEO –

Raja Vaidyanathan, Managing Director of Asirvad Microfinance Ltd., “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.”

Words from CFO –

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

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