Consumer lending application EarlySalary said that it had competed a loan assignment transaction worth $ 1 million. This is in addition to NCD issuance of $2 million recently.
The transactions have been structured and executed by Northern Arc Capital; an NBFC that partners with companies in India’s emerging sectors to provide them access to credit. A loan assignment is a standard form of assignment under which a lender assigns its rights relating to a loan agreement to a new lender.
Ashish Goyal, CFO, EarlySalary 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.’’
Set up three years ago, EarlySalary provides loans to people against their salary. It has a presence in 17 cities and has disbursed loans worth over Rs 850 crores.
Kshama Fernandes, CEO of Northern Arc said; “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.”