Equitas Micro Finance India P Ltd, a Chennai-based microfinance company, has lined up debt to the tune of Rs 100 crore from Small Industries Development Bank of India (Sidbi).
This is in addition to the earlier sanctioned limit of Rs 47 crore, making a cumulative exposure of Rs 147 crore from Sidbi. The bank has also increased its equity stake in Equitas and now holds five per cent.
Equitas managing director PN Vasudevan, said the company had already received Rs 40 crore and the remaining Rs 60 crore would be drawn in the next two months. The proposed infusion would help it expand in Tamil Nadu and Maharashtra.
The company is planning to add 100,000 customers to its existing 600,000. It has also set a target to close the current financial year with an outstanding of Rs 550 crore from the present Rs 430 crore.
Sidbi general manager RM Nair said the bank had identified microfinance as a focus area to improve financial inclusion. “Our standing in Tamil Nadu (for MFIs) is around Rs 300 crore and we are planning to close the fiscal with Rs 600-700 crore.”