Affordable loans to Covid-affected micro entrepreneurs

Bengaluru: Avanti Finance on Tuesday announced its collaboration with Michael & Susan Dell Foundation to support micro-entrepreneurs in securing low-cost loans to rebuild their livelihoods and resume business activity disrupted in the wake of outbreak of the Covid-19 pandemic.

This is an innovative strategic collaboration in the social fintech sector. The Dell Foundation has provided Avanti Finance with a low-cost debt to the tune of Rs 15 crore, which Avanti will utilise to provide unsecured loans up to Rs 1,50,000 to low-income borrowers in urban and peri-urban areas in Madhya Pradesh, Gujarat, and Tamil Nadu for a period of up to 30 months. Avanti's extensive network of partners, curated to accelerate access to formal credit and customized financial products to the unbanked, will be leveraged to execute this program.

Speaking at the event, Nat Malupillai, Director, India, Michael & Susan Dell Foundation, said. "We are committed to helping micro-entrepreneurs return to normalcy and be on a path to recovery. Avanti provides a strong digital loan delivery model. Their open-access technology platform enables credit operations in a paperless, presence-less and cashless manner. Avanti's partnerships with various community organisations on the ground ensure that funds are channeled to borrowers, which can be used to rebuild livelihoods that have been disrupted by Covid-induced economy shutdowns as part of our road to recovery program". The Michael & Susan Dell Foundation and Avanti Finance are known for their pioneering work in providing access to financial assistance and helping to assimilate underserved communities within the organised financial system. The partnership promises to boost economic recovery, improve the quality of livelihoods, and move the needle on financial inclusion in India.

"Our collaboration with the Michael & Susan Dell Foundation comes at a vital moment when micro entrepreneurs need every support to be on a road to recovery. This impact-driven initiative to support entrepreneurs with limited access to capital will help them rebuild their businesses and financial health, which have been severely affected by the pandemic. In the next few months, this low-cost loan program will help them regain their economic and social status," said Manish Thakkar, COO, Avanti Finance.