ADB – NACL loan agreement

ADB - NACL loan agreement

Question : Northern Arc Capital Limited (NACL) has recently(December 2020) signed a loan agreement with ADB(Asian Development Bank) to support the livelihoods of microfinance borrowers and micro, small, and medium-sized enterprises (MSMEs) in India. How much the loan amount under this agreement ?
(a) 40 million dollars
(b) 30 million dollars
(c) 20 million dollars
(d) 15 million dollars
Answer (a)
Related facts

  • NACL(Northern Arc Capital Limited) is a debt platform for financial inclusion focused institutions.
  • It has recently(December 2020) signed a loan agreement with ADB(Asian Development Bank) to support the livelihoods of microfinance borrowers and micro,small and medium-sized enterprises(MSMEs) in India.
  • The loan amount under this agreement is 40 million dollars.

Disbursement

  • The loan is disbursed to NACL as part of ADB’s ongoing COVID-19 response.
  • NACL will on-lend the loan proceeds and provide guarantees to financial institutions and individual borrowers.
  • NACL will also on-lend to affordable housing finance companies.

By — Pankaj Pandey.

Link:
https://www.adb.org/news/adb-northern-arc-sign-loan-support-microfinance-borrowers-and-msmes-india