By John Reynolds on Wednesday 6 November 2019
Aura says its total lending capacity has now reached $259m.
Aura, a lender that provides affordable loans to low-income families in the US, has received a $130m (£101m) asset-backed revolving credit facility from a New York-based investment management firm.
The credit facility, from Varadero Capital, brings Aura's total lending capacity to $259m (£201m).
The credit facility extends an existing relationship between Aura and Varadero Capital.
Aura says it has now provided approximately $635m (£493m) in loans to more than 475,000 borrowers since its inception in 2014.
“Aura is thrilled to expand our already deep relationship with Varadero,” said James Gutierrez, CEO of Aura. “We will use this new credit facility to keep pace with our growth and accelerate our path to profitability.“
“We strongly believe in Aura’s mission and credit culture, and that’s why we’ve been investing in its social bond program since 2015, and why we’re extending this revolving credit facility now,” said Fernando Guerrero, Managing Partner and Chief Investment Officer of Varadero Capital.
“Through its innovative distribution platform, Aura is able to provide affordable loans to hard-working people who otherwise lack access to capital.”
Aura says it has saved over $400m (£310) in fees and interest for its borrowers and that two-third of its borrowers have improved their credit rating by an average of 285 points from their first to second loan.
Aura runs a social bonds programme, which allows banks and other financial institutions to invest in loans to low-income individuals.