Aye Finance disburses 60,000 loans to MSMEs

Aye Finance has emerged as a leading MSME lender in India. Incepted in the year 2014 with a vision to leverage technology in resolving the challenges encountered by MSMEs in accessing business funding, the Gurgaon-headquartered FinTech lender has disbursed 60,000 loans till date, enabling the growth and development of the crucial sector.

"I strongly believe that if India has to rise with a social balance, the micro businesses at the bottom of the pyramid have to be enabled and empowered. I co-founded Aye Finance with Vikram Jetley to accomplish this by transforming micro and small scale enterprise financing in India. On April 2014, the company gave its first business loan to a micro enterprise at its Karampura branch in West Delhi. Having disbursed 60,000 loans amounting to over Rs. 700 crores since then, Aye is now poised as a leader in the space of MSME lending," said MD and co-founder of Aye Finance, Sanjay Sharma.

To best address the risk appetite and payback credentials of these enterprises that lack proper business documentation and credit histories, Aye Finance adopted a unique "Cluster Based Credit Assessment" methodology. Understanding different industry clusters helped Aye Finance gain significant insights into the cash-flows and seasonal fluctuations of these enterprises.

Aye services over 50 industry clusters in India through its 73 Branches, including sports goods manufacturing, hosiery, gota work, marble inlay work, dairy farming, jutti (foot-wear) manufacturing, amongst others. And by using crowd CRM and teaching its borrowers to use non cash modes of repayment, Aye has been able to reduce the costs of origination and servicing of loans.

Aye is equity funded by three reputed investors- Accion, SAIF Partners and LGT. It has over a dozen debt partners including India's largest PSU Bank SBI; and leading global impact investors like BlueOrchard Finance Ltd, Triodos Investment Management and Symbiotics.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel