Northern Arc Capital raises $10 million from US investor Calvert Impact Capital

Northern Arc Capital has raised $10mn debt from US-based impact investor Calvert Impact Capital, close on the heels of its raising $50 million from American development bank US International Development Finance Corp.

This is Calvert Impact Capital’s largest debt investment in India, Northern Arc said in a statement.

The local non-bank lender plans to use the fund towards on-lending to financial institutions as well as lending directly to retail customers and to mid-market corporates.


Underbanked customers, including low-income households and small businesses, to whom credit has dried up over the last few months due to the pandemic, will be a key beneficiary of the proceeds, Northern Arc said.

“The partnership with Calvert Impact Capital is long-term & multi-dimensional, helping both organizations achieve common goals across impact and growth. These include aiding small businesses and promoting gender equity, a cause that is strongly endorsed by both organizations," Northern Arc chief operating officer Bama Balakrishnan was quoted as saying in a press statement.