Avian Finance Limited - Managing Finances

Avian Finance Limited, often stylized as Avian, is a non-banking financial company (NBFC) in India focused on providing financial services to the informal sector. Specifically, Avian targets micro and small enterprises (MSEs) that often struggle to access traditional banking services due to limited credit history, lack of collateral, or complex documentation requirements.

Founded in 2017, Avian operates with a mission to empower these underserved entrepreneurs, fueling their growth and contributing to financial inclusion. They achieve this by offering a range of financial products tailored to the specific needs of their target audience. These products typically include small business loans, working capital loans, and term loans, designed to help MSEs expand their operations, manage cash flow, and invest in equipment or infrastructure.

A key differentiator for Avian is its emphasis on a relationship-based lending model. Instead of relying solely on automated credit scoring systems, Avian employs field officers who conduct thorough on-the-ground assessments of potential borrowers. This involves visiting the borrower’s business, understanding their operations, and evaluating their repayment capacity based on a holistic understanding of their circumstances. This personalized approach allows Avian to assess risk more accurately and extend credit to borrowers who might otherwise be excluded by traditional lenders.

Technology also plays a crucial role in Avian’s operations. They leverage digital platforms for loan application processing, disbursement, and repayment collection, streamlining the lending process and improving efficiency. This also helps to reduce operational costs, allowing them to offer competitive interest rates to their borrowers. Furthermore, Avian utilizes data analytics to monitor portfolio performance, identify potential risks, and continuously refine their lending strategies.

Avian’s impact extends beyond simply providing access to finance. They also offer financial literacy training and business advisory services to their borrowers. This helps entrepreneurs improve their financial management skills, make informed business decisions, and ultimately increase their chances of success. By combining financial products with capacity building, Avian aims to create a sustainable and positive impact on the lives of the entrepreneurs they serve.

The company has experienced significant growth since its inception, expanding its reach to multiple states across India. While challenges remain, such as managing credit risk in a volatile economic environment and navigating regulatory complexities, Avian is positioned to continue playing a vital role in promoting financial inclusion and supporting the growth of the MSE sector in India.