Best For-profit Project for Underserved Communities Winner: Aye Finance - Bridging the Credit Gap in India

Aye Finance is the winner in the Best For-profit Project for Underserved Communities category at the Money Awareness and Inclusion Awards 2023 (MAIAs). 

This accolade recognizes Aye Finance’s extraordinary efforts in revolutionising micro enterprise lending in India and closing the credit gap faced by millions of unbanked micro businesses. 

Driving Economic Growth and Inclusion

Aye Finance was established in 2014 with a vision to uplift the micro businesses at the bottom of the pyramid by addressing the credit needs of unbanked micro enterprises in India. 

These enterprises collectively face a staggering credit gap of $123 billion, hindering their growth and potential to contribute to the country’s economy.

Aye Finance has pioneered innovative approaches to derive lending insights from alternate data sources and leverage low-cost mobility and cloud-based technologies. By utilising effective credit appraisal techniques and modern workflow automation, Aye Finance bridges the gap between the bottom of the pyramid businesses and organised lending, fostering financial inclusion and economic empowerment.

“Our mission is to catalyse the micro businesses that play a vital role in providing employment opportunities, contributing to the GDP, and fostering rural industrialization,” said a spokesperson for the winners.

Embracing Technology for Accessibility

One of the major obstacles faced by micro enterprises in accessing formal channels for capital is the lack of business documents.

Aye Finance has addressed this challenge by developing the utility app “mAye,” which enables micro entrepreneurs to digitise their business records and efficiently manage their operations. From daily bookkeeping to employee attendance tracking and creditor-debtor management, “mAye” provides a comprehensive solution to micro business owners, empowering them to streamline their financial processes.

Closing the Gender Gap and Empowering Women

Aye Finance has taken a proactive stance in addressing the exclusion of women entrepreneurs from mainstream finance, offering customised business loans to women-owned micro businesses.

• This results in a portfolio consisting of 95% women as co-applicants and over 16% as main applicants. 
• In certain sectors like livestock, the percentage of women participation as main applicants reaches an impressive 35%.
  
  

Additionally, through their not-for-profit arm, Aye Finance has been instrumental in building the capabilities of women micro enterprises, providing skills training and livelihood opportunities to over 15,000 women-owned grassroots businesses. 

“Their commitment to closing the gender gap in entrepreneurship is commendable and reflects their dedication to fostering a more inclusive society,” MAIA co-founder Trudi Harris commented. 

Making an Impact on the Underserved

Aye Finance’s efforts have been remarkably effective, bringing over 500,000 micro enterprises into the folds of the formal economy. They have disbursed credit lines of over $810 million to unorganized businesses across 396 locations in 22 Indian states. By establishing low-cost branches and deploying an efficient feet-on-the-street team, Aye Finance assists these businesses in accessing loans and provides essential mentoring to ensure timely repayment, enabling them to build a positive credit history.

As Michael Gilmore, co-founder of the MAIAs, states, “Aye Finance exemplifies the spirit of financial inclusion and demonstrates the power of entrepreneurship to uplift communities. They are truly deserving of this award.”

To learn more about Aye Finance’s work, as well as all the other winners at MAIA 2023, visit: https://www.maiawards.org/winners-2023