Lender profile
Northern ARC business loans
Northern ARC is on Recur Club's lender panel, writing dropline overdraft, operating lease, purchase invoice discounting and 4 other products. Observed tickets run ₹1 cr to ₹20 cr, priced between 14% and 14.5%. Median turnaround from application to disbursal is about 47 days.
- ✓Tickets from ₹1 Cr – ₹20 Cr across 7 products
- ✓Indicative pricing 14% – 14.5%, as quoted on live transactions
- ✓Around 47 days from application to disbursal when the file is clean
- ✓We check your fit against every lender on the panel, not just this one
7
Products live
₹10 Cr
Median sanction
47
Days median turnaround
7
Sanction letters read
— The screen your file has to clear
The screen your file has to clear
What is checked before anything else, and applies to every product below.
Rejects
- Not deploying in MFIs
- We can't do coal traders
- Deploying only in impact and climate-related sectors — solar, wind, EV, battery, waste management
- Will not fund bridge-to-equity rounds or runway-extension financing for startups
20 more ▾ ▴
- "As per the debt profile as on 31.03.2026 shared, the company current obligations amount to INR 3.09 crores and the DSCR amounts to < 1x. We would pass the case basis above."
- Confirmed not moving ahead with this borrower name (Bico Twitex), as discussed on call
- Will not take up the case because the FY26 provisional financials had unresolved classification errors after three revision iterations
- "There is a default history in this entity."
- Will not fund case where a shareholder in borrower's company (here, primary promoter also directs Rajat Ispat) has a Major Default/NCLT/CIRP filing against it, regardless of case outcome/dismissal
- Will not fund case with High TOL/adjusted tangible net worth 4X+ combined with significant debtors stretched beyond 6 months
- Will not fund case showing increase in short-term debt with no subsequent growth in turnover/numbers
- We have evaluated it few times earlier. Will pass it for now.
- Evaluated earlier and declined
- Will not move forward with the transaction as the Net worth of the company per FY26 prov. financials is INR 5.30 crores, which is below our threshold criteria.
- "Default history not ok. Reviewed earlier as well."
- Lender indicates there is a default history associated with the entity under consideration.
- Declined the deal — entity's revenue of INR 40 crores was too small for purchase invoice discounting (Promoter Invoice Discounting)
- Declined the deal — entity lacks rated corporate buyers required for SID (Supply Invoice Discounting) consideration
- Niine has been previously evaluated by their team and was rejected as a potential lending opportunity
- A ₹3.32 Cr debtor from group company Arrant Prefab Solutions (APS) overdue >180 days is deducted from adjusted tangible net worth, making the company unlendable for unsecured credit
- Lender reviewed the deal earlier and is not keen to proceed ahead
- Declined partnership firm deal with Acuite BB+ rating as it does not meet investment criteria
- Northern Arc won't take the deal forward, citing a recent change in business model with no prior proof of concept.
- Northern Arc won't take the deal forward, citing small scale of operations.
Wins
- Prefers NBFCs where the promoter does not run other businesses, especially real estate
- Can lend to unrated or BB-rated NBFCs with AUM of ≈40-50 Cr
- Wants to enter NBFCs at an early stage to build a long-term relationship, including small NBFCs just starting out
- Can fund NBFCs where the underlying product is unsecured
20 more ▾ ▴
- Currently focused on solar EPC and module manufacturing companies
- …more in playbook
- Prefers NBFCs where the promoter does not run other businesses, especially real estate
- Can lend to unrated or BB-rated NBFCs with AUM of ≈40-50 Cr
- Wants to enter NBFCs at an early stage to build a long-term relationship, including small NBFCs just starting out
- Can fund NBFCs where the underlying product is unsecured
- Currently focused on solar EPC and module manufacturing companies
- For SID, end clients must be BBB-rated or good companies/MNCs
- Expanding beyond SCF to term loans, machinery financing, and asset financing
- For purchase invoice discounting, can do unsecured lending with just a personal guarantee
- For SID, requires escrow in addition to other security
- For term loans, requires secured lending with charge on current assets
- Treats infrastructure as a negative/avoid sector
- Structured Credit can be done with only charge on current assets
- Can provide moratorium on Structured Credit deals
- Can do term loan plus WCDL structures for Structured Credit
- SCF focus is more on SID with escrow required
- Focus more on EBITDA positive companies from next FY
- Do secured only
- Keen to close more brands & managed spaces deals
Behaviour & gates
- Borrower: age ≥2y (varies by product)
- CIBIL ≥650 (cohort ≈690)
- avoid: Real Estate (non asset Light), Financial Services (varies by product)
- pan-India
- Private Limited, Public (varies by product)
- sector-agnostic (45 sectors — full list in data JSON) (varies by product)
36 more ▾ ▴
- Financials: EBITDA ≥₹-10cr (cohort ≈8) (purchase invoice discounting)
- EBITDA ≥₹-100cr (secured term loan, venture debt, working capital demand loan)
- EBITDA ≥₹-50cr (domestic factoring, sales invoice discounting)
- EBITDA ≥₹5cr (distributor financing, vendor financing)
- runway ≥12mo
- rev ≥₹100cr (cohort ≈120) (purchase invoice discounting)
- rev ≥₹5cr (secured term loan)
- rev ≥₹70cr (distributor financing, domestic factoring, sales invoice discounting, vendor financing, working capital demand loan)
- rev ≥₹100cr (venture debt)
- TOL/adjusted tangible net worth ≤4 (purchase invoice discounting)
- TOL/adjusted tangible net worth ≤5 (secured term loan, venture debt, working capital demand loan)
- debt/EBITDA ≤4 (cohort ≈2.1×)
- networth ≥₹10cr (cohort ≈25) (purchase invoice discounting)
- networth ≥₹3cr (distributor financing, domestic factoring, sales invoice discounting, secured term loan, vendor financing, working capital demand loan)
- networth ≥₹30cr (venture debt)
- DSCR ≥1 (cohort ≈1.8×) (varies by product)
- debt/networth ≤4 (varies by product)
- maximum assetsundermanagement: 10000 (secured term loan only)
- minimum assetsundermanagement: 30 (secured term loan only)
- gross non performing assets: 3 (secured term loan only)
- Deal: rate 11–17% (range across products — see matrix)
- ticket ₹2–100cr (range across products — see matrix)
- tenure 12–48mo (range across products — see matrix)
- no PEP
- Security (observed): Personal Guarantee Of Promoters / Directors / Property Owner (100%)
- FD margin 10–15% (81%)
- median ticket ₹10cr
- median rate 14%
- median turnaround 47d
- Security asked in : Personal Guarantee Of Promoters/Directors (×1)
- Security asked in : Fixed Deposit <5% (×7), FD margin 5–10% (×7), FD margin 10–15% (×7), FD margin 15–20% (×7)
- Security asked in : Personal Guarantee Of Promoters/Directors (×25), FD margin 10–15% (×22), 1st/pari-passu charge on current assets (×19), 2nd charge on current assets (×10)
- Security asked in 2026: Personal Guarantee Of Promoters / Directors / Property Owner (×57), FD margin 10–15% (×46), 1st/pari-passu charge on current assets (×23), FD margin 15–20% (×10)
- share → in-principle approval (initial interest): ≈15d
- in-principle approval → sanction (underwriting): ≈28d
- sanction → disburse (closing): ≈5d
— Products & indicative terms
What Northern ARC lends, and on what terms
What has actually been offered on live transactions, not brochure numbers. Treat them as the band you are likely to be quoted inside, not a promise. Open a row for that product's credit box.
| Product | Ticket | Pricing | Tenure |
|---|---|---|---|
Purchase Invoice Discounting▾Turnaround ~61d Rejects
Wins
22 more ▾ ▴
Behaviour & gates
32 more ▾ ▴
| ₹1–10 cr | 14–14.5% | 12 mo |
Secured Term Loan▾Turnaround ~34d Rejects
Wins
22 more ▾ ▴
Behaviour & gates
31 more ▾ ▴
| ₹20 cr | 14% | 36 mo |
Also offered, with no terms observed yet: Sales Invoice Discounting, Dropline Overdraft, Operating Lease, Vendor Financing, Working Capital Demand Loan.
— Typical term sheet
What a sanction from Northern ARC actually looks like
Reconstructed from real sanction letters. Small samples, so read them as observed rather than as a rule.
Specimen sanction
Representative of the median file. Your actual terms will move with rating, security cover and relationship.
How often each clause appears
Share of the 7 sanction letters carrying the clause.
Financial-ratio threshold to be maintained71%
— Security & covenants
What they will ask you to pledge
Counted across the sanction letters read. A combination is normal, and most files carry more than one.
- Fixed Deposit / Cash Collateral2 letters
- Fixed and current assets2 letters
- Movable Fixed and Intangible Assets (Hypothecation)1 letters
- Current Assets (Hypothecation)1 letters
- Book Debts / Receivables1 letters
- Insurance Proceeds / Escrow Receivables1 letters
- Fixed Deposit / Cash Collateral ×2, Fixed and current assets ×2, Movable Fixed and Intangible Assets (Hypothecation) ×1, Current Assets (Hypothecation) ×1, Book Debts / Receivables ×1, Insurance Proceeds / Escrow Receivables ×1
— Common questions
What borrowers ask about Northern ARC
- What does Northern ARC lend?
- Northern ARC writes dropline overdraft, operating lease, purchase invoice discounting, sales invoice discounting, secured term loan, vendor financing and 1 further products. Across those, observed facilities run ₹1 cr to ₹20 cr.
- What ticket size does Northern ARC offer?
- Facilities observed on live transactions run from ₹1 cr to ₹20 cr. The band differs by product, so the figure that applies to you depends on which facility you are asking for.
- What rate does Northern ARC charge?
- Rates observed on live transactions fall between 14% and 14.5% a year. Tenures run 12 to 36 months. These are observed figures, not a quote, and the rate you are offered depends on your file.
- How long does Northern ARC take to disburse?
- About 47 days from application to disbursal at the median, where the file is complete. Missing financials, unresolved security or a pending no-objection from an existing lender are what usually stretch it.
- What are Northern ARC's eligibility criteria?
- The first screen is the bureau: a borrower CIBIL of at least 650. Revenue, leverage and debt-service thresholds apply on top and vary by product. The full credit box for each product is set out on this page.
Next steps after Northern ARC
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Check my matchLast updated
Lender intelligence dossier - screening gates, per-product terms and sanction observations, derived from lender policy documents and observed transactions. Figures are observed from a sample and are not an offer, a commitment, or a statement of Northern ARC's current policy. Terms are set by the lender at the time of sanction.