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Asirvad Microfinance, a subsidiary of Manappuram Finance, on Monday said it had raised $15 million (around Rs 110 crore) in a seven-year external commercial borrowing loan from the US-based WorldBusiness Capital Inc (WBC).

The loan is supported by the US International Development Finance Corporation, Asirvad Microfinance said in a statement.

Proceeds from the loan, availed under the external commercial borrowing (ECB) norms, will enable Asirvad to expand its business of providing small loans to low-income women business owners in rural areas.

This loan is Asirvad’s third long-term facility denominated in foreign currency from an international financial institution, the company added.

This transaction is a big boost to the microfinance sector and reiterates the resilience Asirvad has always shown, and the speed at which it bounces back, said Raja Vaidyanathan, Managing Director of Asirvad.

Rob Monyak, Executive Vice-President and Chief Lending Officer for Eurasia/Africa at WBC, said Asirvad plays a vital role in meeting the needs of women-owned enterprises operating in rural areas.

Asirvad was set up in 2007 by Vaidyanathan and the company was sold to Manappuram Finance in 2015. It has a customer base of around 260 lakh women, served by its 7,000 employees across 1,000 branches spanning 23 states.

Raja Vaidyanathan, MD of Asirvad Microfinance, 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.”

Manappuram Finance took over the Chennai-based company in February 2015, and at present has a 94.78 percent stake.

Founded in 2003, WBC is headquartered in Hartford, the capital city of Connecticut, US. It is a regulated commercial finance company that offers flexible term loans to help small and medium-sized businesses in manufacturing, distribution, logistics, transportation, food processing, packaging, renewables, financial services, and other sectors.

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