In a groundbreaking move towards financial inclusion, Federal Bank, one of India’s leading banks, and Avanti Finance, a digital financial inclusion platform, have formed a co-lending partnership aimed at facilitating accessible and affordable credit for rural underserved borrowers. With Avanti Finance’s highly adaptable lending platform and its extensive on-ground partner network, coupled with Federal Bank’s robust financial position and shared mission, this partnership is set to cater to underserved populations in over 20 states across India.
The collaboration will pave the way for the development of specialized loan products tailored to meet the unique requirements of marginalized communities, ultimately promoting financial inclusion and bolstering livelihood sustainability.
Harsh Dugar, Executive Director of Federal Bank, expressed, “The partnership with Avanti aligns seamlessly with our inclusive banking initiatives and digital-centric approach. Avanti’s innovative business model, combining a flexible lending platform with a nationwide partner network, presents a tremendous opportunity for us to provide small-scale loans to customers nationwide, assisting them in augmenting their incomes.”
Rahul Gupta, CEO of Avanti Finance, remarked, “The co-lending partnership with Federal Bank represents a significant stride in our mission to cater to the credit needs of the next 100 million households in India. Federal Bank, with its strong focus on digital financial products and commitment to financial inclusion, is an ideal collaborator for establishing a scalable and impactful program in rural areas. The program has been initiated in Odisha, Maharashtra, and Bihar during the pilot phase, with ambitious plans to expand nationwide and disburse INR 500 crores annually, benefiting over 100,000 households.”
The co-lending initiative between Avanti Finance and Federal Bank marks a monumental advancement in India’s financial inclusion efforts. It leverages the combined strengths and expertise of both institutions to create a powerful synergy between a digital financial inclusion platform and a reputable bank with a solid financial foundation, making credit more accessible to underserved and unbanked populations. This partnership promises not only to transform lives but also to contribute significantly to the nation’s economic growth and development.
