# 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. Source: https://www.recurclub.com/lenders/northern-arc Last updated: 2026-09-29 ## Products and indicative terms Observed on live transactions. Not an offer or a quote. | Product | Ticket | Rate | Tenure | |---|---|---|---| | Purchase Invoice Discounting | ₹1–10 cr | 14–14.5% | 12 mo | | Secured Term Loan | ₹20 cr | 14% | 36 mo | | Sales Invoice Discounting | - | - | - | Also offered, with no terms observed yet: Dropline Overdraft, Operating Lease, Vendor Financing, Working Capital Demand Loan. ## Eligibility ### Will not fund - 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 - "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. ### Prefers - 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 - …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 ### Screening gates and observed behaviour - 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) - 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 ## Sanctioned terms (from 7 real sanction letters) ### Sanctioned amount: median ₹10 cr (₹10 cr–₹20 cr) · NEW ×3 - median ₹10 cr (₹10 cr–₹20 cr) · NEW ×3 ### Typical security: 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 - 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 ### Typical covenants: - Financial-ratio threshold to be maintained — 71% of letters (e.g. "Minimum adjusted tangible net worth to be maintained at INR 55 Crores during the exposure of the NACL facility; TOL/adjusted tangible net worth < 3.30x; Current ratio > 1x; all Financial Covenants tested on…") - Financial-ratio threshold to be maintained — 71% of letters (e.g. "Minimum adjusted tangible net worth to be maintained at INR 55 Crores during the exposure of the NACL facility; TOL/adjusted tangible net worth < 3.30x; Current ratio > 1x; all Financial Covenants tested on…") ### Term sheet by ticket size: (facilities, largest first) - (facilities, largest first) ## Common questions ### 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. --- Check which lenders fund a business like yours: https://www.recurclub.com/recur-market All lenders: https://www.recurclub.com/lenders 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.