“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 crore since then, Aye is now poised as a leader in the space of MSME lending,” said Sanjay Sharma, MD & Co-Founder of Aye Finance.
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, said Sharma, which helped the lender to assess the cash flow issues and seasonality of the companies.
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.
Being funded by Accion, SAIF Partners and LGT Aye Finance has over a dozen debt partners including India’s largest State Bank of India; and leading global impact investors like BlueOrchard Finance, Triodos Investment Management and Symbiotics.