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In a securitisation deal, pools of assets such as auto loans, mortgage, microfinance loans, etc, are pooled together and hived into special investment vehicles, which issues Pass Through Certificates (PTCs) bought by investors.
S Bhaskar, group chief financial officer of Equitas Holdings said that securitisation is an important source of funding for Equitas which provides microloans to the un-banked and under-banked sections of the society.
"Way Back in 2009 , Equitas Created history by doing the first securitisation by an MFI in India. Since then the company has done 19 securitisation transactions amounting to over Rs 1,270 crore, which are invested mainly by commercial banks and Mutual funds," he said.
Through such investments the company is able to meet the funding needs of unbanked segments of the society and also channelising the bank funds which in turn meets the priority sector lending norms stipulated by Reserve Bank of India, he added.
He said that the RBI, in its recent study has stressed upon the continued importance of priority sector lending policy to enhance the credit flow to under-served segments such as small and marginal farmers, micro enterprises, weaker sections among others and the company aims to play a significant role in the flow of credit to these segments.
Equitas, in seven years, has disbursed micro-credit to over 2 million micro-entrepreneurs. It has disbursed loans to more than 35,000 customers under its vehicle finance scheme, apart from offering housing finance.
