Federal Bank, a leading Indian Bank and Avanti Finance, a digital financial inclusion platform, have entered into a co-lending partnership to enable hassle-free, affordable credit access to rural un/underserved borrowers. Avanti's hyper-flexible lending platform and expertise in leveraging a diverse on-ground partner network, combined with Federal Bank's strong balance sheet and mission alignment, will enable this partnership to serve this segment of borrowers in more than 20 states across the country.
The partnership will enable the development of fit for purpose loan products that cater to the specific needs of underserved communities, promoting financial inclusion and supporting livelihood sustainability.
Harsh Dugar, Executive Director, Federal Bank said, “The Avanti partnership blends well with our inclusive banking initiatives, as well as our digital focus. Avanti's unique business model combining a flexible lending platform with a curated nationwide partner network provides a great opportunity for us to serve customers across the country with small ticket loans that will help them enhance their incomes.”
Rahul Gupta, CEO, Avanti Finance said, “The co-lending partnership with Federal Bank is another big step for us in our mission to serve the credit needs of the next 100 million households in India. Federal Bank, with its strong orientation to digital financial products & commitment to financial inclusion is an ideal partner for us to build a scalable and impactful programme in rural areas. The programme has been launched in Odisha, Maharashtra and Bihar in the pilot phase with ambitious plans of scaling it pan-India and disbursing INR 500 crores annually benefitting over 100,000 households.”
The co-lending partnership between Avanti Finance and Federal Bank represents a significant step forward in financial inclusion in India. It leverages the strengths and expertise of both institutions to create a powerful synergy between a digital financial inclusion platform & a reputed Bank with a strong balance sheet that will make credit more accessible to underserved and unbanked populations. The collaboration will not only transform lives but also contribute to the economic growth and development of the nation.