C4D supports affordable housing through AVIOM




Capital 4 Development Partners (C4D Partners) has made an investment in India-based Aviom India Housing Finance Pvt Ltd – A woman owned affordable housing finance company. The company will use the funds to set-up additional branches and expand its loan portfolio.

Founded in 2016, Aviom is an innovative affordable housing finance provider, offering tailor-made solutions to the under-served and under-banked informal income segments in semi-urban and rural markets. New Delhi-based Aviom provides loans to low-income individuals and families and currently has 12 branches in Rajasthan, 3 branches in Madhya Pradesh and 5 branches in Haryana. The company provides loans for the following purposes: home purchase & construction, home extension & improvement and loan against property.

Housing is the most basic human need; it is also one of the most important constituents of economic development of any country. Buying a first house can be nerve-racking. That is because the process is intimidating. And what makes it that? At the top of the list is getting a home loan. Not just for buying/purchasing new house, getting the loan for home improvement, extension or construction, is also as tough as it could get.

The housing industry of India is one of the fastest growing sectors. A large population base, rising income level and rapid urbanization are leading to this growth in the housing sector. An analysis of housing affordability over the last 20 years reveals that despite increasing demand for housing; housing including rentals has been largely unaffordable for most of the world’s population.

Major financial institutions are reluctant to lend to informal and semi-formal borrowers due to inconsistent income levels and lack of documentary proof. Also, these major financial institutions look for credit scores or credit history of loan applicants, which informal and semi-formal sector lack.

Whereas, Aviom is focused on largely underserved sector and has made this as their major target audience. The company also serves to semi-formal sector. The company understands the significant growth potential in these sectors. And this growth is due to increasing affordability level, favorable regulatory incentives and increased capital inflow.

About Aviom

Aviom India Housing Finance Pvt Ltd, realized the desperate need of affordable housing loans for informal and semi-formal sector. The company has developed/designed a model that could provide affordable and easily accessible housing finance to low-income group. Aviom aims to facilitate families in realizing their dream of owning their first house. As on August 2019, Aviom has served 7,000 clients and all of their clients are women.

Aviom has come up with an initiative called Aviom Shakti, which aims at achieving mutual benefits for rural women as well as providing effective sourcing for Aviom. It’s a unique strategy that works on serving a dual purpose of both strengthening Aviom’s sourcing as well as empowering women in rural India by providing livelihood to them as partners with the possibility of fixed income for the ones who excel and show consistent conversions. As on August 2019, Aviom has onboarded 7,500+ women to this program.

By providing loans to under-served population, the company is increasing the purchasing power of the population. Further, Aviom is positively adding up the SDG 1 i.e. No Poverty, SDG 8 i.e. Decent Work & Economic Growth, SDG 9 i.e. Industry, Innovation and Infrastructure. Additionally, through Aviom Shakti, the company is intending to achieve SDG 5 i.e. Gender Equality

About Capital 4 Development Partners (C4D Partners)

Capital 4 Development Partners (C4D Partners) is a Dutch fund management company with offices in The Netherlands, India, Indonesia and the Philippines. C4D Partners manages impact capital and supports growing Small and Medium Enterprises (SMEs) to bring about and promote fair economic development in emerging countries. Together with the portfolio companies, C4D Partners works towards creating decent and sustainable jobs, improving the market position of small marginalized suppliers, farmers and entrepreneurs, offering affordable and quality products and services to underserved and vulnerable populations and boosting the development of efficient and sustainable supply chains. One of the impact goals is to achieve gender equality, by investing at least 30% of the committed capital in women-SMEs, and invest in companies that include women in their supply chains.