Godrej Finance Partners Muthoot FinCorp to Expand MSME Lending via Property-Backed Loans

• Aims to achieve disbursals of INR 250 crore in FY26.

Godrej Capital, is the financial services arm of Godrej Industries Group. Godrej Capital’s subsidiary, Godrej Finance (GFL), has entered a co-lending partnership with Muthoot FinCorp to enhance credit access for MSMEs in Tier-2 and Tier-3 cities, building on Muthoot FinCorp’s strong presence and deep market reach in these regions.

L to R: Vinod Reddy, CBO – Secured & Unsecured Lending Business, Muthoot FinCorp, Manish Shah, MD & CEO, Godrej Capital, Shaji Varghese, CEO, Muthoot FinCorp, Pankaj Gupta, MD & CEO, Godrej Finance – a subsidiary of Godrej Capital, Shalinee Mimani, CRO, Godrej Capital

The co-lending partnership will offer loan against property ranging from INR 10 lakh to INR 75 lakh, with an average ticket size of INR 15 lakh. With operations spanning pan-India, this offering is well-positioned to tap into markets with strong demand for accessible and timely credit. The partnership will soon be expanded to include other products such as gold loans and housing loans.

Through a seamless digital integration, this partnership will ensure faster approvals, greater transparency, and compliance with RBI’s co-lending framework. Under the terms of the agreement, the company will assume 80% of the risk, with Muthoot FinCorp covering the remaining 20%. Muthoot FinCorp will oversee underwriting, collections, and the customer journey, while the company will ensure regulatory compliance through a jointly defined policy framework.

Manish Shah, MD & CEO of Godrej Capital stated, “Access to timely credit can make all the difference for a growing business, especially in Tier-2 and Tier-3 cities where it is needed the most. With our partnership with Muthoot FinCorp, we aim to bridge this gap for MSMEs by offering simpler, transparent, and faster lending solutions. Our endeavour is to help businesses grow with confidence while contributing to a stronger and more inclusive financial system.”

Shaji Varghese, CEO of Muthoot FinCorp added, “MSMEs are the largest contributor of employment in the country after agriculture but access to credit is a pertinent challenge faced by the sector. With our 3700+ branches and Muthoot FinCorp ONE app, we have expanded our reach to the hinterlands ensuring accessibility to these MSMEs. With our new partnership with Godrej Capital for Loan Against Property offering to the sector, I am sure we will further contribute to the growth of MSMEs by meeting their financial requirements timely and effectively”.

Through its subsidiary GFL, the company offers a diverse range of loan products to meet the varying needs of MSMEs and individual borrowers. These include offers such as Loan Against Property, Udyog Loan Against Property for smaller-ticket requirements, and unsecured Business Loans.

The alliance is targeting disbursals of INR 250 crore in this fiscal year, with a strong focus on high-potential markets across North, South, and Western India. As one of the few co-lending partnerships between NBFCs, it reflects a robust digital-first approach and sets the stage for broader participation in the fast-growing MSME lending space.

Lark Finserv Launches India’s First API-Based Lending Against Securities Platform

Lark Finserv, one of India’s emerging fintech innovators, has launched the country’s first API-driven credit infrastructure for Lending Against Securities (LAS). This launch enables wealth-tech platforms, brokers, and investment apps to help their clients easily access liquidity against mutual funds directly within their app ecosystem, marking a first in India.

Rohit Pateria, Founder, Lark Finserv

Lark Finserv aims to transform the Credit-Liquidity Equation for investors. Previously, investors seeking liquidity from their holdings had to either redeem their mutual funds early or look outside their wealth-tech platform for loans from traditional lenders. This practice disrupted the customer journey and negatively impacted the long-term growth potential of the investment.

Lark is poised to change this through its full-stack technology. By integrating its API-first LAS Tech Stack with existing investment infrastructure, Lark allows wealth-tech platforms to provide instant credit against investments, including mutual funds. Investors can now borrow quickly and securely against their portfolio without needing to redeem or exit.

“Lending against securities represents a $100+ billion opportunity in India,” said Rohit Pateria, Founder & CEO of Lark Finserv. “Our launch is about more than just adding credit; it’s about changing how liquidity flows into the wealth-tech ecosystem. By creating an API-first LAS infrastructure, we’ve made it possible for wealth platforms to keep investors engaged, grow assets under management, and provide credit as a service that feels integrated.”

Lark’s LAS infrastructure is designed as a multi-lender platform, acting as a neutral, plug-and-play marketplace that seamlessly connects wealth-techs with multiple lending partners at once. Instead of being tied to the policies or balance sheet of a single lender, this model unlocks wider credit coverage to serve investors across diverse risk tiers, fosters competitive pricing by giving platforms and investors more options, and ensures resilience and scale by eliminating single-point dependencies while allowing lenders to compete to meet demand.

India’s mutual fund industry has surpassed ₹60 lakh crore in assets, with millions of investors entering the market each year. However, a significant problem persists; investors often redeem mutual funds when they need liquidity, disrupting their compounding journey and lowering long-term returns. Lark’s LAS will serve as a robust solution for the industry. By allowing loans against mutual funds, Lark offers wealth-techs an effective way to prevent this loss. Investors gain liquidity while keeping their investments intact; platforms maintain higher assets under management, and fund houses benefit from stronger long-term growth. “Preventing premature redemption is the biggest use case for LAS in India’s wealth-tech ecosystem,” adds Rohit. “We believe that lending against mutual funds alone can significantly drive industry growth and support long-term capital formation.”

Lark’s LAS does not only help in investment securities against mutual funds, it encompasses all types of investment securities available to retail and high-net-worth investors. From listed stocks to corporate bonds, and from REITs/ETFs to private-market AIF units, Lark’s infrastructure supports a variety of assets for financing. This extensive coverage allows wealth-tech platforms to cater to different investor profiles, whether they are first-time mutual fund investors, high-net-worth individuals holding corporate shares, or institutional clients invested in REITs or AIFs.

Lark is changing the lending landscape with a straightforward credit system that makes Loans Against Securities (LAS) a natural addition for wealth-tech platforms. With fast API integrations, these platforms can provide instant, paperless credit for investors directly in their apps, without needing to redirect users. For investors in India, this means they can access money without selling assets. They get immediate funds while keeping their portfolios fully invested.

Just as embedded finance changed payments and insurance, Lark is establishing a new space in Wealth + Credit. This drives the next wave of change in wealth-tech. By linking wealth platforms and lenders, Lark allows investors to borrow as needed without disturbing their investments. It boosts market strength by keeping assets under management invested, which supports both equity and debt markets. Through its API-first, multi-lender setup, Lark brings credit innovation at scale and encourages growth in the ecosystem where platforms keep customers, lenders broaden their reach, and investors remain in control.

Lark is not just providing credit; it is creating a new financial foundation for Wealth-Tech 2.0 in India.

Lark’s launch marks the beginning of a larger mission to build the credit operating system for India’s investment ecosystem. In the long run, it envisions extending its liquidity solutions into tokenized securities, real estate, and emerging asset classes, shaping a future where credit is seamlessly embedded across the financial internet.

About Lark Finserv

Founded in the year 2023, Lark Finserv is India’s premier credit infrastructure provider for wealth platforms. Built on a purpose-driven SaaS model, Lark enables seamless lending against mutual funds and a wide spectrum of securities through its world-class technology stack. By embedding lending-as-a-service (LAS) directly into wealth management journeys, the company empowers wealth management firms, fintechs, mutual fund distributors, independent advisors, and stockbrokers to unlock liquidity instantly—without requiring investors to sell their holdings or disrupt their long-term wealth creation goals.

SBI Unveils Its First Co-Lending CPC

Shri. Surender Rana DMD (ASF), SBI inaugurated State Bank of India’s first co-lending Centralised Processing Cell (CPC) at Nariman Point, Mumbai. The CPC is a dedicated unit for co-lending business of NBFCs.

In order to have seamless operations of specialized activity under Co-lending, a dedicated Centralised Processing Cell (CPC) for Processing & Sanctioning of Loans is setup by the Banks.

The NBFCs under the Co-Lending Model sources the loan proposals from all locations in India and forwards to the Bank from their Centralized Location. On behalf of the Bank, CPC undertakes Loan proposals Acceptance, Disbursement, Monitoring and Reconciliation.

The inauguration ceremony witnessed the presence of SBI dignitaries, Shree. Shantanu Pendsey CGM (ABU & GSS) and Smt. Salila Pande CGM MMR. Other dignitaries from the corporate centre and NBFC teams of NIDO Home Finance and Ugro Capital Ltd. were present as well.

The inauguration of co-lending CPC is a step towards demonstrating SBI’s commitment to growing its co-lending book with a focus on safety and sustainability.

This commitment is in line with SBI's ongoing efforts to support MSMEs and the under-served population where the bank has made significant strides in FY24. To strengthen support to MSMEs having little or no access to formal credit, SBI has entered into a co-lending agreement with 9 NBFCs. Further, to dedicatedly continue reaching out to the unserved and under-served populace, the bank has signed MoUs with 23 NBFCs/HFCs under co-lending model.

The inauguration of the co-lending CPC reflects SBI’s determination to grow the co-lending book in a safe way and reiterates the bank’s dedication towards welfare of MSMEs and under-served population.

Mahindra Finance Forays Into Co-Lending Space in Partnership with SBI

• Mahindra Finance enters into a co-lending partnership with State Bank of India
• Partnership to unlock the potential of Priority Sector Lending (PSL)

Mahindra Finance, part of the Mahindra Group and one of India’s leading Non-Banking Finance Company, has announced a strategic co-lending partnership with State Bank of India (SBI), India’s largest public sector bank. The co-lending model is designed to harness the distribution strength of Non-Banking Financial Companies (NBFCs) and the cost-efficient capital of banks, ensuring wider outreach and better interest rates for customers.

The partnership was launched by Ramesh Iyer, VC and MD, Mahindra Finance and the Dy Managing Director, SBI in the presence of Raul Rebello, MD and CEO – Designate, Mahindra Finance and the CGM (SME) from SBI.

Launched on a pan India level, this partnership is expected to offer affordable solutions to Mahindra Finance customers. The interest rates offered under this co-lending arrangement would be determined based on the customer's credit profile, ensuring a personalised and competitive financing experience.

Raul Rebello, MD and CEO- Designate, Mahindra Finance, said, "We are delighted to enter into this strategic co-lending arrangement with State Bank of India, India’s pioneer bank with multi-faceted experience. This collaboration is a step forward in enhancing financial accessibility and inclusivity. As we move forward, our focus remains on fostering innovation, embracing strategic collaborations, and tailoring our services to meet the evolving needs of our customers. Through this partnership we will further our capability to be a responsible financial solution partner to Emerging India.”

With Mahindra Finance strong rural distribution network and expertise in the financial sector and SBI’s competitive capital cost customers will get competitive advantage. The objective is to extend joint financial support to customers thereby enabling credit to the unserved segments of the economy at an affordable cost, marking Mahindra Finance's first co-lending tie-up with a bank. The partnership with SBI emphasises the long-term commitment of both entities towards empowering the MSME sectors. Under this agreement, Mahindra Finance will facilitate leads and manage loan servicing while serving as a single point of contact for prospective customers.

About Mahindra & Mahindra Financial Services Limited

Mahindra & Mahindra Financial Services Limited (Mahindra Finance), part of the Mahindra Group, is one of India’s leading non-banking finance companies. Focused on the rural and semi-urban sector, the company has over 9.3 million customers and has an AUM of over USD 11 Billion.

The Company is a leading vehicle and tractor financier, provides loans to SMEs and also offers fixed deposits.

The Company has 1,367 offices and reaches out to customers spread over 3,80,000 villages and 7,000 towns across the country.

Mahindra Finance has been ranked 59th among India’s Best Companies to Work 2023 by ‘Great Place to Work Institute.’

LoanTap Announces Key Promotions & Appointments to Drive Growth and Innovation

LoanTap, a leading digital lending platform, has recently announced a series of strategic appointments and promotions to bolster its team of highly experienced professionals. These strategic moves reflect LoanTap's unwavering commitment to excellence, customer satisfaction, and continued growth in the rapidly evolving financial technology sector.

LoanTap is pleased to announce the appointment of Mr Rajeev Das, formerly the Chief Risk Officer (CRO) of LoanTap, as the Chief Executive Officer (CEO) of i-Loan Credit Private Limited. i-Loan Credit Private Limited is an RBI registered NBFC that focuses on loans for electric two wheelers and green energy. Mr Das brings with him an impressive career spanning over two decades at Standard Chartered Bank, where he successfully managed the bank's substantial SME portfolio. His extensive experience includes overseeing various audits, such as RBI audits, BRR audit, TCF audit, peer audit, and group audit of sales operations in India and abroad. As CEO of i-Loan, Mr Das will leverage his visionary approach to drive the company's strategic vision of green finance and actively promote the adoption of electric two-wheelers. Under his leadership, i-Loan aims to establish electric two-wheelers as the new paradigm, contributing to a greener and more sustainable future.

In addition, Mr Ameet Venkeshwar, a seasoned finance professional with over 16 years of experience, has been promoted from Business Head to the prestigious position of Chief Business Officer (CBO). With a successful track record in aligning businesses for optimal results, Mr Venkeshwar brings invaluable expertise to his new role. His previous role as the Zonal Sales Head for Maharashtra at IndusInd Bank and his experience with Citi Finance further enhance his capabilities. As CBO, Mr Venkeshwar will provide strategic leadership and oversee all aspects of LoanTap's business operations, with a specific focus on Distribution and AfterPay. His appointment is expected to drive efficiency, enhance productivity, and propel the company towards achieving its targets and business performance goals.

LoanTap's Co-Founder and CEO, Mr Satyam Kumar, expressed his thoughts, stating, "We are proud to announce the well-deserved leadership roles assigned to Mr Ameet Venkeshwar and Mr Rajeev Das as they fully understand the DNA of the organization. Their extensive industry experience and exceptional leadership qualities will further drive our growth and innovation. As LoanTap continues to expand and enhance its services, their expertise will be invaluable in our pursuit of providing accessible financial solutions to our customers."

With these strategic appointments and promotions, LoanTap is well-positioned to maintain its successful trajectory. The company has experienced exceptional growth, expanding its distribution and AfterPay network across diverse sectors. Looking ahead, LoanTap remains steadfast in its commitment to making credit more accessible to over 4 lakh merchants through its AfterPay network this year.

About LoanTap

LoanTap is one of the fastest-growing & trusted FinTech companies in the category with its in-house RBI-registered NBFC led by experienced leadership and a highly skilled team. LoanTap focuses on customer delight by helping them choose the best loan products from a portfolio of multiple products like personal loans, business loans, home loans, gold loans, loans against mutual funds plus many use case loans. LoanTap has had a successful year expanding its distribution and AfterPay network in various sectors. Looking towards the future, LoanTap’s goal is to make credit more accessible to over 4 lakh merchants through their AfterPay network this year. LoanTap plans to achieve this goal by utilizing LTFLoW, their innovative LendTech platform. LTFLoW allows to establish a roadmap towards profitable growth while creating a resilient digital lending ecosystem. With its anchor-led distribution stack, marketplace for capital coverage, and in-house NBFC, users of LTFLoW can continue to create innovative products and expand their reach.

New Fair Lending Disclosure Guidelines to Enhance Trust Among Stakeholders: Fintech Convergence Council

The Fintech Convergence Council (FCC) welcomes the recent announcement by the Reserve Bank of India (RBI) introducing the Fair Lending Disclosure Guidelines (FLDG). These guidelines mark a pivotal moment in the evolution of the digital lending landscape, and the FCC acknowledges the positive impact they will have on the industry.

The FLDG are set to accelerate digital lending by fintech companies and anticipate a significant surge in funding for digital lending fintech. The digital lending segment witnessed remarkable investment inflows in 2022, and the FLDG will undoubtedly fuel its continued growth.

The FCC recognizes the importance of establishing proper frameworks within the banking sector to ensure compliance with the FLDG. These guidelines will empower banks to implement efficient processes that adhere to the regulatory framework while enabling them to scale their partner-led digital lending initiatives effectively.

Mr. Navin Surya, Chairman, Fintech Convergence Council, said, "The RBI's circular on Default Loss Guarantee arrangements in digital lending reflects their commitment to fostering innovation while ensuring responsible risk management. By conducting extensive consultations and issuing detailed guidelines separately, the RBI establishes a transparent and comprehensive regulatory framework, promoting trust and confidence in the digital lending ecosystem. This move will not only boost credit penetration but also encourage collaboration between fintech and regulated entities for the benefit of the economy."

One key aspect of the FLDG is the emphasis on increased transparency within the lending ecosystem. Lending service providers (LSPs) will now be required to disclose all their relationships and portfolios, including any defaults, to relevant entities (REs). This heightened transparency will foster greater trust among stakeholders and enhance accountability within the industry.

While the guidelines may expose LSP-RE agreements to scrutiny by competitors, the FCC believes that this will encourage healthy competition and drive further improvements in the lending sector. The guidelines offer an opportunity for fintech companies to showcase their capabilities and maintain high standards while ensuring fair lending practices.

The FCC commends the Reserve Bank of India for its proactive approach to implementing the FLDG, which will undoubtedly shape the future of digital lending in India. These guidelines will empower stakeholders to embrace innovation, strengthen partnerships, and foster a transparent and resilient lending ecosystem.

About Fintech Convergence Council

The Fintech Convergence Council (FCC) was formed in 2018 to represent the positions of various regulated financial service providers and fintech companies regarding different issues. The FCC today represents over 100 members coming from different domains of the industry such as digital lending, wealth management, insurance, digital financial service providers, Regtech, Agritech and Bureaus.

The FCC has been at the forefront of public policy advocacy for the above-mentioned domains including the curation of thought leadership content. The council focuses on resolving various sector-specific challenges before the industry and aims at being a platform for all the stakeholders in the financial services (BFSI) ecosystem with an agenda to deliberate pertinent issues, integrate multiple voices and ensure the development of the fintech sector.

Website- https://www.fintechcouncil.in/about-fcc.php

SIDBI Announced Mission 50000-EV4ECO to Strengthen the EV Ecosystem Through Direct and Indirect Lending

Greening Enterprise Eco system- SIDBIs dedicates Mission 50000 - EV4ECO

Strategic financial engagement to uptake EV

Small Industries Development Bank of India (SIDBI), the country’s Principal financial institution for MSMEs, announced Mission 50K-EV4ECO thereby prioritising EV ecosystem development. This is pilot phase to strengthen the EV ecosystem including uptake for 2-w, 3-w and 4-w through direct and indirect lending.

Detailed discussion with stakeholders has revealed that access to adequate finance including competitive rate of interest is a challenge face by MSMEs as also NBFCs, catering to EV ecosystem. On supply side banker perceived these projects as high risk. Similarly, dedicated NBFCs struggle with the high cost of funds which leads to the landed acquisition cost to the ultimate beneficiary being high. Also, there is a need to push the 3 wheelers EV segment. Mission 50K intends to attend to these challenges.

Shri Sivasubramanian Ramann, CMD, SIDBI said “In line with national mission of EV30@30 SIDBI has adopted EV as priority and by launching mission 50K- EV4ECO we intend to promote the entire EV value chain. This pilot shall be followed by scaling up support to eco system from multilaterals support. MSMEs, aggregators and other crucial actors of EV value chain have been facing challenges in convincing financial institutions to lend them. Similarly, the channelising agencies are also facing speed breakers. NBFCs are playing an important role in the enterprise growth strategy of SIDBI. They have shown willingness and ability to reach the bottom of the pyramid businesses, especially in credit deficient geographies, adoption of innovative and nimble credit delivery models and understanding of the local ecosystem. Electric vehicle financing is predominantly being done by small/ unrated NBFCs. These NBFCs have good knowledge of the EV sector. At present, it is not possible for these NBFCs to cater to all MSMEs requiring financing for an electric vehicle for their day-to-day operations or commercial use. We at SIDBI realise the need to give it a developmental push thus giving fillip to the national agenda of Carbon neutral nation”.

Shri Sudhendu Sinha, Adviser (Infra & e-mobility), NITI Aayog said “India has set an ambitious climate change mitigation target and has committed to low-carbon growth in the energy and transport sectors. The transition to electric vehicles (EVs) is a critical cornerstone for transport sector decarbonization. Electric 2/3 wheelers (e-2/3Ws) offer the greatest potential for EV adoption in India, accounting for 79% of passenger road activity, and are already cost-competitive relative to conventional vehicles. To support India’s commitment to EV30@30, SIDBI taking lead in launching the Mission50K-EV4ECO scheme is a step in right direction. This shall enable access to affordable financing for electric vehicles. We look at SIDBI to prioritize the 3-wheeler segment. I am sure these feet on ground pilots shall enable quick replicability and scalability through multilateral support. With special scheme for NBFCs I am confident that mission shall kindle the appetite of BHARAT i.e rural India to start its EV transition journey. “

Under guidance of NITI Aayog, DFS, MoF and GoI, SIDBIs Mission 50K-EV4ECO intends to unlock the market by providing better financing terms and to understand other solution bouquet needed to address the above issues. This scheme is the precursor to EVOLVE scheme by SIDBI-World Bank. The pilot scheme has two components- Direct lending and Indirect lending.

Under direct lending, SIDBI will directly give loans to eligible MSME’s (including aggregators, fleet operators, EV leasing companies) for the purchase of electric vehicles and develop charging infrastructure including battery swapping.

The Indirect scheme targeted at NBFCs (including small unrated/ focused /emerging NBFCs actively engaged in EV financing) shall reach out to last mile by inducing access to funds as also reducing landed cost.

For more details, kindly contact nearest SIDBI office or write to us at gcfv@sidbi.in

About SIDBI:

SIDBI is the principal financial institution set up under an Act of Parliament for promotion, financing and development of the Micro, Small and Medium Enterprise (MSME) sector and for coordination of functions of institutions engaged in similar activities. Over the years, SIDBI has been instrumental in taking up various initiatives for the development of the MSME sector through credit and more importantly, credit plus activities.

About NITI Aayog:

The National Institution for Transforming India (NITI Aayog) was formed via a resolution of the Union Cabinet on 1 January 2015. NITI Aayog is the premier policy ‘Think Tank’ of the Government of India, providing both directional and policy inputs. The Government of India, in keeping with its reform agenda, constituted the NITI Aayog to replace the Planning Commission instituted in 1950. This was done to better serve the needs and aspirations of the people of India. An important evolutionary change from the past, NITI Aayog acts as the quintessential platform of the Government of India to bring States to act together in national interest, and thereby fostering Cooperative Federalism. NITI Aayog also houses ‘National Mission for Transformative Mobility & Battery Storage’ that is driving the E-Mobility all over the country.

Housing Lender to Under-Served AVIOM HFC Raises $30 Mn in Tranches from Nuveen

AVIOM HFC, to receive $30 million in a Series D funding round, through a mix of primary and secondary investments in tranches, by Nuveen, a leading global investment manager with over $1.1 trillion of assets under management.

AVIOM HFC is an affordable housing lender to under-served, low-income households. Its business model combines lending with social impact - catering to a niche market of informal housing. AVIOM HFC works towards bringing these families into the fold of formal financial services.

Stephen Lee, Senior Director & Head of Asia for Nuveen’s Private Equity Impact Investing team said: “Nuveen seeks out innovative companies with transformative business models that solve real-world problems. AVIOM and its leadership have disrupted micro-mortgage lending in India by catering to a hitherto underserved segment. We have been greatly impressed by the company’s history of strong growth & asset quality, profitability profile, and focus on gender inclusion. We look forward to partnering with Kajal and the AVIOM team on their next chapter of growth.”

“We are delighted to partner with Nuveen. The fundraise will propel the company’s loan book and expand its operations into newer geographies to meaningfully support low- income households,” commented Ms. Kajal llmi, MD & CEO at AVIOM India Housing Finance Pvt Ltd. “With this, we propose to extend financial assistance to around 60,000+ families additionally in the next FY by disbursing approx. INR 1200 Cr.” The Company currently has a customer base of around 50,000+ accounts. 

“This new equity investment will propel AVIOM HFC to grow 6x by 2026.” she added. Over the next 6 months, AVIOM looks to increase its monthly disbursement to INR 150 Cr a month and will also add 50 more branches to its existing network.

Since AVIOM’s very inception, the company has remained true to its mission of empowering women through financial independence and inclusion. They have been providing loans to women borrowers from predominantly semi-urban and rural regions who do not have any formal income documentation. Affordable mortgages enable women to build homes they could otherwise not afford and establish a credit history. Going forward, the company aims to help more people in low-income households across semi- urban and rural areas who needs home loans for home improvements, renovations, and sanitation."

We are proud to have impacted 150,000+ lives by helping their families access good quality housing & sanitation. We will redouble our efforts to touch 750,000+ lives by fiscal 2026," said Ms. Kajal Ilmi. “With this support, we are further motivated to deliver on our mission of financial inclusion." 

Women’s economic empowerment is at the very core of AVIOM HFC mission and operations. AVIOM HFC innovative sourcing model, known as AVIOM Shakti, also creates quality employment opportunities for over 55,000 women—with plans to add 5,000 on monthly basis. Shakti officers are the referral agents for AVIOM loans. This in turn makes AVIOM one of the largest employers of women in rural regions in India.

The company provides loans in the range of Rs 1 lakh to Rs 5 lakh for house construction, extension, and renovation. It has a network of 120 branches in 12 states, including Rajasthan, Madhya Pradesh, Uttar Pradesh, Punjab, Uttarakhand, Karnataka, Telangana, Andhra Pradesh, Tamil Nadu, Maharashtra, Gujarat, and Haryana.

AVIOM HFC has been supported by various marquee Debt Partners.

International Lenders: US International Development Finance Corporation (DFC), Blue Orchard, Impact Investment Exchange (IIX), Triple Jump and Symbiotic.

Banks & Financial Institutions: State Bank of India, HDFC Bank, Northern Arc, Federal Bank, IndusInd Bank, Tata Capital, Vivriti, Jana Small Finance Bank, Hinduja Leyland Finance, Aditya Birla Finance, Caspian, Shriram Housing Finance, Black Soil, SBM Bank, LIC Housing Finance, Cholamandalam Investment & Finance Company, Tourism Finance Corporation of India, ESAF Small Finance Bank, Utkarsh Small Finance Bank, IDFC First Bank, Manappuram Finance Limited, Nabsamruddhi Finance and Indian Bank.

RupeeRedee Witnesses 4X Growth in Acquisition, Plans to Disburse 500 Cr in 2021-22

The startup has successfully experienced 3 Million funding growth from Debt & Equity and 251 crores disbursal in 2020-21

RupeeRedee – a technology driven lending platform for the millennials and underserved category of customers, has achieved another milestone with 2 Million funding growth from Debt & Equity & successfully disbursed 251 crore loans in 2020-21. The digital lending platform is moving on its growth trajectory while strengthening its product line, partnerships and presence in the Indian Fintech Market.

RupeeRedee operates under its own Captive NBFC FincFriends Private Limited to facilitate short-term personal loans coupled with digital lending services. It has deployed various forms of underwriting including alternate data sources, not restricting to credit score-based underwriting. In a short span, the digital lending platform has witnessed 4X growth in customer acquisition with 5 million+ app installations and successfully disbursed 1 Million Loans.

Delighted with the company's performance, Mr.Artem Andreev, Country Head, RupeeRedee, FincFriends said, “Considering the growth numbers, we are delighted to be known for offering fintech solutions and products based on customer needs. We have witnessed last year a revolutionary year for RupeeRedee, recording immense growth in the market and looking forward to cementing its market leadership.”

Being present for 4 years in the market, RupeeRedee has disbursed over 1 Million+ loans in the last three years. In addition, it issues over 4000 loans per day and plans to disburse 10,000 loans per day by the end of March 2023.

To accelerate business growth, RupeeRedee emphasised on ensuring cost optimization and overcoming scalability challenges. This has resulted in an avg. growth of the company’s revenue by 3X for captive NBFC FincFriends and 4X for RupeeRedee(MoneyMitra IT Solutions).

Furthermore, to accelerate the development of future offerings, the company announces its plan to double the team size in the next 4 months and have 100 employees by the end of the year. The addition to its existing team will majorly belong to the Engineering, Operations and Marketing department to maintain the company’s internal innovation index, partnership opportunities and new product launches. 

“Finding the best talent in the digital lending market is not easy. However, because of the boost in remote work culture, the industry is looking for fresh talent to steer the future of the digital lending field and hoping for the diverse recruitment for the varied segment ”, he added.

VP-Product, Marketing & Business Mr. Ajay Chaurasia also commented on the growth. “ RupeeRedee has seen immense attraction from customers all across India in last 12 months. We have almost 5 times more online applications compared to the last 3 years. We are now diversifying our product portfolio for our existing and new customers which will allow us to grow further. We are also open to partnerships with more NBFCs to serve more customers. We are looking to raise Debt funding from Banks and NBFC’s to increase our book multifold and target of 5 Million Dollar has been set to raise before March 2023”.

Incepted in 2018, the company has grown multifold that has resulted in the company to book profits for the first time in 3 years. Considering the company’s present business growth, it is considering raising ‘5-10 Million Dollars in Debt Funding or by Issuing bonds’ to impel technological expansions, accelerate sales and marketing efforts and prepare itself for global scale. It is also looking forward to achieve another milestone of 10 million + installations by the next financial year.

NeoGrowth Raises $20 Mn via ECBs from DFC

Funds to be used for onward lending to SMEs

NeoGrowth, India’s leading NBFC lender with a focus on Micro, Small & Medium Enterprises (MSMEs), today announced that it has secured funding from the United States International Development Finance Corporation (DFC) for USD 20 million via External Commercial Borrowing (ECB) route.

U.S. International Development Finance Corporation (DFC) is America’s development finance institution. DFC partners with the private sector to finance solutions to the most critical challenges facing the developing world today. They invest across sectors including energy, healthcare, critical infrastructure, and technology. DFC also provides financing for small businesses and women entrepreneurs in order to create jobs in emerging markets.

DFC investments adhere to high standards and respect the environment, human rights, and worker rights. DFC has a large investment portfolio in India, including in health, agriculture, renewable energy, climate solutions, and other critical sectors.

Arun Nayyar, Whole-time Director and CEO, said, “NeoGrowth is funding India’s small businesses by leveraging the digital ecosystem and this backing from DFC will help us drive that mission further while also creating a positive impact on SMEs. We will be using these funds to further extend credit to our customers to propel their business growth.”

James Polan, DFC’s Vice President of the Office of Development Credit, said, “DFC’s investment in NeoGrowth will increase access to capital for small businesses in India. NeoGrowth’s digital, flexible model enables it to reach more small businesses, promoting financial inclusion, economic growth, and development across the country.

This funding commitment is for 5 years with a 2-year moratorium on principal payment and will be utilised for onward lending to SME customers as per ECB guidelines.

With close to a decade in SME lending, NeoGrowth has engaged with 1 lac+ customers and disbursed over USD 1 billion in loans across 25 locations in India. The company’s digital payments-based lending, modular product suite, analytics-based underwriting, and flexible repayment options are key to enabling credit access to SMEs. The company is continuously innovating to meet the financing needs of its customers for their various business needs.

NeoGrowth is a new-age digital lender, with a focus on Micro, Small, and Medium Enterprises (MSMEs). We are a Systemically Important, Non-Deposit taking Non- Banking Financial Company (NBFC-ND-SI), offering a wide range of products tailored to the dynamic needs of small businesses. Our data science and technology-led approach enable us to offer quick and hassle-free loans to MSMEs across 70+ segments across 25+ cities in India. We offer a unique daily repayment option to our customers with multi-channel repayment modes. We have served and engaged with 1,00,000+ businesses and supported them with their growth ambitions. We not only help small businesses grow but also drive financial inclusion making a positive social impact.

Founded by industry veterans, our Board of Directors comprises experts, who guide the leadership team toward our strategic goals. NeoGrowth is backed by renowned investors, namely Omidyar Network, Lightrock, Khosla Impact, Accion Frontier Inclusion Fund – Quona Capital, IIFL Seed Ventures Fund, WestBridge, and Leapfrog Investments.

For more details, www.neogrowth.in

How Digital Lending Platforms Are Helping Small Businesses Manage Their Cash Flow Challenge?

This content is authored by Mr. Praveen Paulose, MD & CEO of Celusion Technologies 

Micro-entrepreneurs often face challenges to their cash flow when starting and operating their businesses. A multitude of factors might lead to cash flow problems, including poor expenditure management to promote expansion without adequate funding. However, in response to these obstacles, digital lending platforms have created digital tools and technology that can aid in identifying, regulating, and forecasting cash flows, making it simpler to overcome the hurdles.

In financial services, many of these solutions are developed using disruptive technologies like Artificial Intelligence, Blockchain, and Deep Learning that enable firms to collect rich data sets about their customers, identify consumption patterns, and even remove human involvement where possible. Hence, the MSME lending landscape is transforming as the small business owners embark on a new phase of growth that encompasses effectiveness, transparency, and accessibility, due to the integration of finance and technology, resulting in greater expectations and higher customer satisfaction.

Here are the five ways digital lending platforms are redefining the ways small business owners manage cash flow challenges:

1. Business lending made simpler

Small businesses are often overlooked by traditional lenders because their loan amounts are considered insufficient and their earnings are regarded as unstable, thus posing a risk. Digital lending platforms are making it easier for SMEs to sidestep conventional loan-obtaining techniques and expand their businesses faster due to easier and simpler business lending.‍ For example, in Peer-to-Peer (P2P) lending, borrowers are directly connected with prospective lenders. Cutting-edge technology has made the application process quicker, faster, and more efficient, encouraging more business owners to use finance to expand or infuse working capital into their operations.

2. Tools for effective account management

With the advent of digital lending platforms, MSMEs/SMEs now have access to a wide range of affordable management tools for everything from client profiles to accounts that used to be expensive in the past. They can track their cash flow in real-time while also ensuring the smooth functioning of their business with the help of online accounting solutions. These accounting solutions, for example, come with business credit integrations that automatically pay off the loan, line of credit, or credit card with cash from customer receipts without requiring human intervention. The digital lending platforms offer expenditure and invoicing tools, allowing business owners to concentrate on development and growth rather than minor concerns, thus helping the business function more smoothly.

3. Transparency in funds transfer

In recent years, the widespread reach of the internet and mobile devices has resulted in digital lending platforms creating digital banking solutions that reduce the costs of fund transfers and the need for currency notes for any transaction. As a result, the financial system has become more transparent and less prone to tax avoidance or other unethical practices, resulting in a competitive and robust business ecosystem.

4. Security

Data breaches pose a major challenge in any business and are not entirely avoidable. Small businesses often lack the resources and know-how to secure their data - and that of their customers, suppliers, and contacts. However, the availability of digital financing platforms has made cyber security an affordable alternative that assists businesses in enhancing their security measures, due to the availability of many software packages, for example, multi-factor authentication, e-signatures, etc. In addition to ensuring privacy and cyber security requirements are met, digital lending platforms also provide accessibility and timely assistance.

5. Digital invoicing

Since payments are an integral part of any business, digital lending platforms assist small businesses in reducing cash flow challenges by automating payments. The convenience of digital invoicing for small businesses allows them to add their signature effortlessly, send instantly, and receive payments almost instantaneously. By eliminating human interactions, leveraging technology reduces the need for money, and by reducing cash outlays, cash flow improves.

Each of these elements has aided in the growth of digital lending and enabled it to provide financial goods to sectors that were previously unable to access conventional banking products. In turn, digital lending platforms enabled small and medium businesses and startups to create, innovate, evolve, and expand, changing the business landscape worldwide. A plethora of promising regulatory steps has also been implemented, with regulatory agencies legitimizing the video-based customer identification procedure for verifying new clients and permitting onboarding via video KYC verification. A shift to digital lending through the use of innovative technology has the potential to revolutionize the lending industry, making cash flow smooth and efficient, thus positively impacting millions of lives.

Alternative Data and Emerging Technologies Will Drive Credit Decisioning in the Consumer Credit Market: Experian Study

Alternative data and emerging technologies will drive credit decisioning in the consumer credit market: Experian study

A new study on credit decisioning and alternative data use reveals interesting insights about the consumer credit landscape in India.

As India’s economy recovers from the pandemic, businesses continue to be impacted and consumers continue to grapple with the aftermath of salary cuts and job losses. As consumers apply for credit cards and loans to manage costs, lending institutions have the added responsibility of making accurate credit decisions. According to a commissioned study conducted by Forrester Consulting on behalf of Experian, the world’s leading global information services company, nearly 65% of India’s lending companies surveyed said that the wrong credit decision can lead to financial losses, while 44% said that such decisions can put customers in difficult situations.

As lending organisations continue to strive to improve their credit decisioning processes, the study highlighted the need to focus on leveraging alternative data and emerging technologies. The study surveyed 164 senior risk decision-makers from banking, fintech, and non-banking lending organisations across India, Indonesia, and Australia.

The Forrester study also highlighted several key trends across the India market for lenders:

1. Innovation and data utilisation – the key to better lending

According to the study, around 82% of respondents believed that their organisation needs to improve the use of data and insights in business decision-making. Also, around 71% wanted their organisation to improve its ability to innovate. These numbers highlight the fact that most respondents believed that there is room for improvement in using data and analytics for credit decision-making.

According to a World Bank report, India has the world’s second-largest unbanked population after China. Neeraj Dhawan, Country Manager, Experian India, says: “As banks, NBFCs and fintech companies attempt to drive financial inclusion, the use of alternative data can help lenders assess the creditworthiness of new-to-credit customers more efficiently. This can result in better access to quick credit and help transform lives.

2. Embrace new technologies and improve data analytics capabilities

The study found that around 82% of respondents felt that their organisation should leverage more data from traditional sources and 80% believed that it should look for alternative data sources for more efficient credit risk assessment. These numbers indicate that employees feel that their organisation is not utilising available data optimally.

Further, around 82% of respondents felt that they could improve data and analytics capabilities, and nearly 84% felt that there was an urgent need to embrace emerging technologies like artificial intelligence for credit risk assessment and management.

Unfortunately, only 36% of respondents felt that limited data standardisation was a major barrier to increasing automation in credit decisioning for lending organisations. Also, 66% felt that legacy systems and dependence on manual processes were preventing organisations from turning to automation.

Mr Dhawan adds: "Lenders need to have more streamlined usage of data between traditional credit data and alternate data sources whilst embracing emerging technologies throughout the entire credit lifecycle. This approach can help businesses in driving higher customer acquisition and provide a better overall digital experience.”

3. For effective credit decisions, choosing the right data is crucial

42% of respondents believe that their organisation is using alternative lending data to make effective credit decisions. While the use of alternate data in credit decisioning is still gradually being adopted, there are positive signs that this is picking up, with around 67% of respondents feeling that investing in real-time data and analytics will be the top priority of their organisation over the next 1-3 years.

4. Automation – a long way to go

The study highlighted how automation is being used in credit decisioning across various lending products:

• Credit Cards:
• Full automation: 42%
• Partial automation: 58%
• Personal Loans:
• Full automation: 40%
• Partial automation: 58%
• Full automation in Other Loans:
• Auto Loans: 31%
• MSME Loans: 22%
• Home Loans: 16%

Neeraj Dhawan, Country Manager, Experian India, says, “Automation can shorten the sales cycle and improve the quality of service offered to customers, and should be a priority for businesses to stay competitive in the current credit landscape.”

Download the Forrester study, “Drive Speed and Accuracy with Emerging Technology and Alternative Data”, to find out more. https://www.experian.in/experian-forrester-study-on-credit-decisioning-and-alternative-data-use

U GRO Capital's AUM Crosses INR 3,650 crore, with highest ever disbursement of INR 1,350 crore in Q1 FY23

• Off-book AUM stands at ~INR 750 crore (21% as on June 30, 2022)
• Pioneered ‘Lending as a Service’ model backed by robust data and technology architecture
• Customer base at 25,000+ as of June 30, 2022

U GRO Capital, a listed, MSME lending fintech platform, continues its growth momentum with an AUM of INR 3,656 crore as of June 30, 2022 (+166% compared to June 30, 2021) and is on track to cross the mark of INR 7,000 crore AUM by March 2023.

The company has effectively demonstrated the power of co-lending, after having kicked off this stream by experimenting with top Public Sector Banks. The current off-book AUM stands at ~INR 750 crore (21% as on June 30, 2022). The company aims to grow its loan book under co-lending partnerships by 3X to over INR 2,000 crore by March 2023.

U GRO Capital has pioneered ‘Lending as a Service (LaaS)’ model and is revolutionizing MSME lending through its data analytics prowess and robust technology architecture. As a testimony to the same, U GRO Capital’s proprietary scoring model (GRO Score) has successfully processed 21,000+ applications, 67,000+ bureau records, 45,000+ bank statements and 14,500+ GST records in the last one year.

Key performance highlights for Q1 FY23

• Loan Portfolio: Loan and Income Growth, Portfolio quality
• AUM of INR 3,656 crore (+166% compared to Q1’FY22 and +23% compared to Q4’FY22)
• INR 1,359 crore of Gross Loans originated in Q1’FY23 (+311% compared to Q1’FY22 and +41% compared to Q4’FY22)
• Total Income stood at INR 123.8 crore (+141.4% compared to Q1’FY22 and +8.4% compared to Q4’FY22)
• Profit before tax (PBT) increased to 10.4 crore (+340.6% compared to Q1’FY22 and +29.3% as compared to Q4’FY22)
• Profit after tax (PAT) increased to 7.3 crore (+329.4% compared to Q1’FY22 and +20.7% as compared to Q4’FY22)
• GNPA/ NNPA as on Jun’22 stood at 1.7% /1.2% (As a % of Total AUM)
• Liability and Liquidity Position
• Total lender count increased to 63 as on Jun’22, added 8 new lenders during Q1’FY23
• Total Debt stood at INR 2,208 crore as on Jun’22, and overall debt to equity ratio was 2.26x
• Healthy capital position with CRAR of 28% (as on Jun’22)
• Branch, Customer Network and Employee Strength
• 25,000+ customers as on Jun’22 (+5,000 customers in Q1FY23)
• 96 branches (as on Jun’22), addition of 5 new branches during the quarter
• 1,275+ Employees as on Jun’22, net employee addition of 165+ during Q1’FY23

Brief financial snapshot:

Particulars	Q1’22	Q4’22	Q1’23	Growth (Y-o-Y)	Growth (Q-o-Q)
Total Income	51.3	114.2	123.8	141.3%	8.4%
Interest Expense	22.4	49.7	53.1	137%	6.9%
Net Total Income	28.9	64.5	70.7	144.6%	9.6%
Operating Expenses	21.6	47.3	51.0	136.1%	7.9%
Impairment on Financial Instruments	4.9	9.3	9.4	91.8%	1.0%
PBT	2.4	8.0	10.4	333.3%	29.3%
PAT	1.7	6.1	7.3	329.4%	20.7%

Commenting on the results, Mr. Shachindra Nath, Vice Chairman and Managing Director of U GRO Capital stated, “U GRO Capital is at the forefront of using data analytics and technology to serve the underserved MSME segment. We have been pioneers of ‘Lending as a service’ by harnessing the power of Co-lending/ Co-origination models and steering the company towards transitioning into a lending platform through off-balance sheet AUM approach. Operational efficiencies have started to kick in with improving profitability with each passing quarter. The company is on track to achieve AUM of INR 20,000 crore by 2025, as we achieved our highest ever disbursement in Q1 FY23.”

About U GRO Capital Ltd

U GRO Capital limited is a listed (NSE, BSE), MSME lending fintech platform. U GRO Capital’s mission is ‘Solve the Unsolved’ – Small Business Credit Need with its omnichannel distribution model combining physical and digital journey of the customer. The Company envisions to spearhead India’s transition of MSME lending market to the new age of on-tap financing. It uses the emerging Data Tripod of GST, Banking and Bureau coupled with its sectoral analysis to solve the problem of credit for small businesses.

U GRO aspires to serve one million small businesses with an asset book of 1% of outstanding MSME credit of India as its first milestone.

Technology underpins every aspect of U GRO’s lending process, from API integrations, sectoral and sub-sectoral statistical scorecards, state-of-the-art AI/ML credit underwriting engine combining bank, bureau and GST statement analyzers, automated policy approvals, and machine learning OCR technology. Company’s GRO Extreme platform empowers fintech and other institutional platforms to deepen their distribution reach through a plug and play API driven seamless integration with U GRO. The company has developed full tech stack to fully automate the complete life cycle of a loan right from origination to collection during the entire customer journey.

The Company has raised ~₹ 3,000+ crore of equity & debt capital from marquee Private Equity Investors, Family Offices, Banks and other Financial Institution over last 3 years.

NeoGrowth Launches Accelerator Business Loans Up to ₹ 20 Lakhs for Immediate Dissemination

Mr.Arun Nayyar,Whole-Time Director & CEO, NeoGrowth 

Neogrowth Launches Accelerator Business Loan; Fast-tracks Loans Up to INR 20 Lakhs - for Immediate Dissemination

Integrates Account Aggregator-based Digital lending across its portfolio

NeoGrowth, the MSME-focused FinTech lender leveraging the digital payments ecosystem, has announced the launch of its new business loan offering, NeoGrowth Accelerator, on the occasion of World MSME Day. The company recently kickstarted its MSME festival and will be undertaking multiple activities to celebrate the spirit of India’s small business owners. The company is now live on the Account Aggregator framework to further strengthen digital lending for MSME borrowers.

NeoGrowth Accelerator is a collateral-free term loan of up to INR 20 lakhs for the underserved MSME segment comprising Manufacturers, Distributors, Traders, Dealers, and Service Providers. The product is designed to fulfill the working capital requirements of GST-registered MSMEs based on their cash flows. This new launch is in tune with NeoGrowth’s ‘Keeping It Simple’ philosophy. NeoGrowth follows data-based decision-making and leverages scorecards and algorithms for customer assessment.

Through the Account Aggregator (AA) ecosystem, NeoGrowth aims to address the MSME credit gap in India and is among the early adopters in the NBFC sector to embed it into its processes. The company integrates account aggregator information, credit bureau scores, proprietary data, and other internal metrics to thoroughly assess potential borrowers and provide hassle-free loans that leverage the digital payments ecosystem. MSME customers will now be able to share all their banking information in a consolidated dashboard and avail credit in a seamless manner.

Arun Nayyar, Whole-time Director & CEO, NeoGrowth, said, “Our objective has been to enhance credit penetration among small businesses with seamless access to loans. Getting loans has always been a challenge for small retailers in India due to complex documentation, time-consuming procedures, and the traditional approach to underwriting. The Accelerator loans offer two convenient and quick options for businesses, with minimal paperwork to help our borrowers scale up their business easily. To make the loan journey simpler for our MSME customers, we have integrated the Account Aggregator framework across our processes.”

With close to a decade’s experience in serving the credit needs of India’s MSMEs, NeoGrowth has a finger on the pulse of small business owners and is constantly innovating to provide the best-in-class credit offerings to its customers. NeoGrowth leverages the latest developments in technology and data science to strengthen its unique product offerings.

NeoGrowth is a new-age digital lender, with a focus on Micro, Small, and Medium Enterprises (MSMEs). We are a Systemically Important, Non-Deposit taking Non- Banking Financial Company (NBFC-ND-SI), offering a wide range of products tailored to the dynamic needs of small businesses. Our data science and technology-led approach enable us to offer quick and hassle-free loans to MSMEs across 70+ segments across 25+ cities in India. We offer a unique daily repayment option to our customers with multi-channel repayment modes. We have served and engaged with 1,00,000+ businesses and supported them with their growth ambitions. We not only help small businesses grow but also drive financial inclusion making a positive social impact.

Founded by industry veterans, our Board of Directors comprises experts, who guide the leadership team toward our strategic goals. NeoGrowth is backed by renowned investors, namely Omidyar Network, Lightrock, Khosla Impact, Accion Frontier Inclusion Fund – Quona Capital, IIFL Seed Ventures Fund, WestBridge, and Leapfrog Investments.

For more details, https://www.neogrowth.in/

Millennial Women's Investments in P2P Lending Rises by 430% - Study

• 30% and 150% rise in women investors and borrowers respectively in FY 21-22
• Mumbai and Hyderabad ranked top in terms of women investing in P2P lending
• Witnesses 150% Y-o-Y growth in women borrowers across the country
• More than 36% of all female borrowers returned to reapply for a loan
• With only a 3.37% default rate; women prove to be better borrowers than men

Mumbai, India's financial city, ranked top, followed by Hyderabad, the city of Nizams, in terms of the highest number of women borrowing from P2P lending platforms as per the data. LenDenClub, the country's leading Peer-to-Peer (P2P) Lending platform, released the report of women investors and borrowers on the P2P lending platform. The data further revealed that Mumbai, Bangalore and Hyderabad lead the race in terms of women investing in P2P space.

According to analysis, there has been a whopping 430% rise in women investors in the P2P lending space in the financial year 2022 compared with FY21. There has also seen a 150% increase in women borrowers on the borrower side y-o-y basis. The study was conducted on the data from 20,165 women investors and borrowers in P2P lending for the period April 2021 to March 2022.

The report further revealed that young and social media-friendly women are much ahead of previous generations when it comes to borrowing or even availing of the P2P lending platform as an investment asset class. Millennial women aged 21-30 years were the most active borrowers, i.e. 56%, and lenders, i.e. 54%. It was followed by the cohort in the age group of 31-40 years that accounted for 37% and 33% in the case of borrowers and lenders, respectively.

Data highlights that Peer-to-Peer (P2P) Lending is fast emerging as an alternative investment option for women. According to the study, the highest number, i.e. over 50% of women, fall in the age group of 31 to 40, and the average amount invested is INR 50,000 in P2P lending. Of the women who invested in the platform, 100% of them re-invested their money. Female investors in P2P come from metro cities. Hyderabad, Bangalore and Mumbai are the top cities where these women lenders invested in the asset class.

With rising education and awareness levels of financial products, an increasing number of women have appeared to take their own financial decisions. Indian women were perceived to be disinterested and unaware of their financial management, but the situation seems to be changing amid the pandemic.

Due to the pandemic, women mostly borrowed from medical emergencies to care for themselves and their family's healthcare. Data revealed that most women borrowed from the platform in the month of April 2021, when Covid's second wave was at its peak. Women also borrowed money for educational purposes indicating that they are career-focused and planning their future effectively by availing credit facilities from P2P lending platforms. The data revealed that Hyderabad & Mumbai were the top cities where the most women benefited from credit.

Women seem to be more particular about repayment of their loans, resulting in LenDenClub experiencing only 3.37% of women delayed or defaulted in the payment. They borrowed amounts as high as Rs 7 lakh and as low as Rs 10,000, whereas the average ticket size of borrowing stood at Rs.70,000. The platform saw over 50% of women borrowers fall between 21 to 30 years of age, indicating that women from Gen-Z and millennial cohort, who are also more acquainted with technology, are comfortable taking digital loans.

Bhavin Patel, Cofounder and CEO of LenDenClub, "We have witnessed a rise in investments from women, especially during the pandemic. The P2P lending space is regulated by RBI and awareness about it is still low among the women counterpart. It has emerged as a better asset class for the investors and source credit during emergencies for the borrowers.

We believe that more awareness about the platform will increase participation from women in tier-1 and tier-2 cities. The easy access to online avenues of financial independence encourages women to make their own financial decisions. India can achieve better financial inclusion with more participation from women. We, at LenDenClub, help our women investors diversify their portfolios with high investment rates, while we encourage women borrowers to take out instant loans in times of need."

About LenDenClub

LenDenClub is a leading peer-to-peer lending platform that provides an alternate investment opportunity to investors or lenders looking for high returns with creditworthy borrowers looking for short term personal loans. With 1 million+ investors on board, LenDenClub has become a go-to platform to earn returns in the range of 10%-12%. LenDenClub offers investors a convenient medium to browse thousands of borrower profiles to achieve better returns than traditional asset classes. Moreover, LenDenClub is safeguarded by market volatility and inflation. LenDenClub provides a great way to diversify your investment portfolio.

Additionally, with more than 2.5 million+ borrowers, InstaMoney, its borrowing platform has disbursed over Rs. 2,000 crores of loans to date. It offers instant personal loans to salaried individuals with flexible loan tenure. The platform aims to foster financial inclusion by leveraging technology to support borrowers with hassle-free loans, even in the remotest parts of the country. InstamMoney also provides small merchant loans of up to Rs. 1,50,000 to borrowers who are into SME business. Through InstaMoney’s partnership with merchants, Instamoney also extends the popular service of Buy Now Pay Later to the end consumers or shoppers.