Belstar Microfinance Limited, a subsidiary of Muthoot Finance Limited has raised equity capital of ₹275 crore from Affirma Capital along with existing investors Muthoot Finance and Maj Invest. 

This comes at a time when the Reserve Bank of India has issued a new regulatory framework for Microfinance Loans on March 14. This infusion is a testament of the confidence that the investors have in Belstar, the company said in a statement.

George Alexander Muthoot, Managing Director, Muthoot Finance said, “The people at the bottom of the pyramid were most impacted during the pandemic and access to finance helps them the most, besides aiding to kick-start the economy. Microfinance is more of a necessity for many small borrowers and businesses to empower the purchasing power to those are at the bottom of the pyramid and also assist in empowerment of rural women. The sector is regulated by the RBI, and keeping in mind the new regulatory landscape, the funding received will help Belstar Microfinance strengthen its balance sheet and also support in growing the loan book.”

Kalpana Sankar, Managing Director and Balakumaran Executive Director of Belstar said, “At Belstar, we are passionate about empowering women and helping them build sustainable livelihood. We are thankful to the investors for having faith in us and the equity funding of ₹275 crore not only reflects the confidence of the investors in us but also the opportunity in the microfinance sector.”

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