Federal Bank, Avanti Finance To Provide Income Generation Loans Under Co-lending Partnership

Federal Bank and Avanti Finance 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, “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.”