IFMR Capital, Equitas in deal for micro lending1 min read . Updated: 09 Mar 2009, 11:20 PM IST
IFMR Capital, Equitas in deal for micro lending
Mumbai: IFMR Capital, a Chennai-based non-banking finance company (NBFC), has entered into an agreement with Equitas Micro Finance India Pvt. Ltd for offering micro credit.
The two companies said in a joint statement on Monday that they have signed a securitisation structure for lending and repayment of funds with principal amount of Rs15.7 crore.
The underlying loan portfolio comprises priority sector urban micro loans originated by Equitas with maturity in October 2010. The securities will be backed by microfinance loan receivables originated by Equitas. Equitas has also provided a first loss facility by way of cash collateral equal to 11.7% of the principal amount of the portfolio, which will cover any shortfall in loan repayment, the companies said.
This transaction has been rated by Crisil, making it the first rated securitisation of microfinance loans in India.