Overview: Financial cost is the largest cost component in the loans offered by Spandana to its low-income clients. Spandana focuses on diversified fund sources so that the cost of borrowing is reduced. The major sources for the funds are Term Loans, Portfolio Sales (bilateral assignments and Securitisation), Capital Markets (NCDs) and Money Market (CPs) products.

Humble Beginnings: When Spandana started operations as an NGO, sourcing commercial funds was a big challenge – Convincing Bankers to give loans for a segment with which bankers experience was not very good required immense passion, drive and demonstrated performance.

Initial Support: The first term loan was given by Friends of Women's World Banking (FWWB) to Spandana and after that, there has been no looking back. Small Industrial Development Bank of India (SIDBI) under its SFMC project funded by IFAD and the ICICI Bank Partnership model helped us fuel the provision of credit to larger number of clients.

Current Status: After transitioning into an NBFC in 2004-05, Spandana has now been raising funds from diversified sources – Development Financial Institutions, Public Sector Banks, Private Sector Banks, Foreign Banks, and other NBFCs besides the capital and money markets.

Bankers to Spandana