Aye Finance using data science to tap lending to Micro enterprises

Aye Finance using data science to tap lending to Micro enterprises

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There has been a recent boom in the financial lending space in the last 3-4 years. Various NBFCs like MoneyTap, IndiaLends, Qbera, and Capital First are competing to grab the online urban market lending needs.

However, there are still more than 60 million micro-enterprises in India that are claimed not to fit enough in order to get loans from the banks and the NBFCs. These micro-enterprises are not able to maintain a balance sheet enough to be attractive for lending.

It has resulted in a big financial backing gap of more than Rs sixteen trillion(as approximated by IFC Report 2012) which continues to be unaddressed. Aye Finance created by Sanjay Sharma as well as Vikram Jetley with a goal to change the micro-business financing of India by innovating on the ways which allow effective credit underwriting of this particular segment. By giving inclusive finance at a price that is affordable to this’ missing middle’, the business is actually solving this particular issue which was considered intractable.

Cluster-Based Technology 

Aye Finance P Ltd has innovated a distinctive cluster-based strategy that uses the significant insights of the businesses of a company bunch to help make excellent lending choices despite the absence of company accounts, credit histories or maybe banking track records. It can make highly effective use of different data science equipment psychometric profile equipment, action grounded statistical credit scores and continuously improving cluster insights within arriving at the determination to lend to any company customer.

Aye Finance has set up more than 165 low-cost branches in more than 18 Indian states and delivering highly personal touch-based services. It utilizes a distinctive “assisted fintech approach” to provide lending assistance to the historically excluded sector.

Deploying Machine Learning using underwriting techniques

Aye is actually honing its underwriting techniques even more and is actually focusing on a machine learning algorithm that will enable it to enhance the effectiveness of its procedures and in extending credit to a much larger micro-business population. “The fortunate factor would be that the industry is very large. It’s believed that this market place is as huge as sixteen trillion in the marketplace. What we’re doing is actually going much deeper and getting to a much larger market share of the marketplace penetration. We are going to continue on the same development trajectory and in 5yrs point, we plan to create our loan guide to INR 5000cr” stated Sanjay.

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