Pune based, consumer lending application, EarlySalary has completed a big loan assignment amounting $1 million. It is in addition to NCD issuance, amounting $2 million, as per the Indian daily news, The Economic Times.
Northern Arc Capital executes and structures transactions of Earlysalary. Northern Arc Capital is an NBFC which collaborates with companies in the country which are emerging in the sector, as reported by the Indian daily news, The Economic Times.
A loan assignment is a typical form of assignment wherein a lender gives his rights pertaining to a loan agreement to a new lender.
Ashish Goyal, CFO of EarlySalary application, said, The last few months have been challenging for NBFCs and with the evolving liquidity situation, we wanted to expand our liability profile, wherein we explored the opportunity of innovative products like loan assignments and securitisation. We have also done an NCD issuance of $2 million recently. We continue to look at all options to ensure that we have sufficient liquidity to expand our offerings to the customers. This transaction marks our journey to deepen the liability side of the business and we expect to do many more transactions in the near future. as reported by the Indian daily news, The Economic Times.
The company was established three years back; it provides loans to individuals against their remuneration. At present, it is operating in 17 cities and has paid out loans more than INR 850 crores.
Kshama Fernandes, CEO of Northern Arc, apprised, This transaction, set against the backdrop of a volatile market, is another proof of investors confidence in the quality of our partners and the stringent underwriting process of Northern Arc. Our modus operandi has been to start working with high potential entities when they are small, to play an integral part in their growth story, and our partnership with EarlySalary exemplifies that. as reported by the Indian daily news, The Economic Times.