Hyderabad-based microfinance institution Spandana Sphoorty Financial Ltd has obtained a loan of Rs 50 crore ($12 million) from Rabo India through a credit facility. The loan will enable about 50,000 rural microfinance clients to avail of micro credit loans.
Rabo India, the Dutch cooperative bank, works with various microfinance institutions and partners. “The Indian microfinance sector continues to mature with the MFI portfolio increasing during the last year despite the credit crisis. Repayment rates have also remained robust through the crisis. Rabo India is keen to continue to deepen the relationship with Spandana and other players in the microfinance industry," said Surojit Shome, Chief Executive Officer, Rabo India Finance, in a release.
Spandana claims to have has one of the lowest operating cost structures in Asia. The MFI has a client base of 3.1 million with a portfolio of Rs 2,333 crore. The loan will help fund the Spandana its expansion plans and make repayments of loans, in April, last year, it had announced its plan to expand base in Northern belt of India.
Earlier, this year in June, Spandana, had raised Rs 80 crore through non-convertible debentures.