Northern Arc raises Rs 40 cr debt via Kotak Mahindra Bank

The money will be lent to small businesses, micro-entrepreneurs and under-banked households with a monthly household income of under Rs 25,000, Northern Arc, formerly IFMR Capital Finance, said on Monday. The transaction is part of the pandemic-response package of both these impact institutions and the debt is the latest in a series of sanctions received by Northern Arc from development finance institutions (DFIs). 

Over the past year, Northern Arc has attracted debt financing from an array of global DFIs and impact investors such as the US International Development Finance Corporation, Asian Development Bank, Calvert Impact Capital, and the Dutch government impact investor FMO, Bama Balakrishnan, chief operating officer Northern Arc said.