ImpactAlpha, December 23 — Northern Arc Capital, an East India-based non-banking finance company that provides access to debt for underbanked individual borrowers and micro- and small enterprises, has secured a $40 million loan from The Asian Development Bank.
The loan from ADB is part of its $20 billion COVID response package for developing countries in Asia and the Pacific. Northern Arc will use the financing to boost lending to affordable housing companies, small businesses, and other Indian borrowers.
The ADB touted Northern Arc’s work with “the most impacted segment” of micro-, small- and medium-sized enterprises and financial institutions. ADB’s Christine Engstrom said the project will help India “kickstart credit flow to this segment of the economy.”