About AKME FINTRADE INDIA (AASAAN LOAN) Limited

Aasaan Loans is powered by Akme Fintrade India Limited (AFIL). Akme Fintrade India Limited (AIFL) has a legacy of 25 years in traditional lending services. Aasaan Loans believes in assisting small businesses in growing by providing loans to those with potential and intent. Many such businesses have little or no access to capital from traditional banks and other financial institutions, or they lack either collateral or a financial data trail to obtain loans.

Aasaan Loans is a digital platform that gathers and analyses business data from multiple sources and draws insights to judge their creditworthiness, past and current performance in the context of the industry in which they operate. This differentiated approach aids in the identification of businesses with low risk and high promise, thereby providing opportunities for those who previously had no access to long or short-term financing. Aasaan Loans' vision to be an ideal online platform where everyone will be able to get fast monetary assistance and unique solutions to their financial requirements and their goal is to energise common people via financial inclusion and understanding, helping them to make sound borrowing decisions.

Aasaan Loans is a non-banking finance company (“NBFC”) incorporated in the year 1996 registered with the Reserve Bank of India as a Non-systemically important non-deposit taking company with over two decades of lending experience in rural and semi-urban geographies in 4 Indian states Rajasthan, Maharashtra, Madhya Pradesh and Gujarat through registered office located at Udaipur, Rajasthan, our Corporate Office located in 226 Mumbai, Maharashtra, 24 physical branches and over 25 points of presence including digital and physical branches having served over 2,00,000 customers till date. They are primarily engaged in rural and semi-urban centric lending solutions to look after the needs and aspirations of rural and semi-urban populace. This digital lending platform, www.aasaanloans.com, has been currently deployed to a select group of users for the purpose of User Acceptance Testing (UAT), specifically focusing on Two-wheeler finance as the initial phase. 

CREDIT MARKET INDUSTRY

Total outstanding credit in India market is approximately INR 198 lakh crore, as on 31st March 2023, growing by 14% over previous year. Total outstanding credit has nearly doubled in the last five to six years, indicating the higher appetite for credit in the market. The Share of Commercial Loans, Retail Loan and Microfinance stands at 50%, 48% and 2% respectively.

INDIAN NBFC INDUSTRY

Non-Banking Financial Companies or NBFCs forms an integral part of Indian financial services industry, often complementing the banking segment. NBFCs has played an integral role in deepening credit outreach, as well as has become an integral tool in extending credit to unorganized segments / rural households / other segments which are considered inherently risky by the formal banking sector. In that sense, NBFCs has played a key role in expanding financial inclusion in the country.

Close to 9,500 NBFCs operate in Indian financial service industry, spread across the country and catering to the financial needs of consumers in urban, semi-urban, and rural markets. These include both investment as well as lending companies, who together offers a wide range of products ranging from loans & advances, leasing, hire-purchase, to chit funds. Based on their nature of operations, NBFCs in India are segmented into four, namely Deposit taking NBFC (NBFC D), Non-deposit taking NBFC (NBFC ND), Asset Reconstruction Companies, and Housing Finance Companies.

Indian NBFC industry is a minor player in global NBFC space, and accounts for less 1% of the total NBFC asset base globally. Between 2002 and 2020, share of India’s NBFC industry in global NBFC asset base have increased by 50 to 60 basis points. This reflects the aggressive credit growth achieved by Indian NBFC sector, as it supplemented the mainstream bank financing segment. During the same period, the size of India’s NBFC sector as a share of the country’s GDP increased from 18% to nearly 60%, underlining the importance of NBFC to the growth of Indian economy.
The last eight to ten years has witnessed strong growth in NBFC credit, due to a mix of favourable regulations, innovative product offering, and high credit appetite by consumers. The credit growth in NBFC sector has come at the expense of bank, with whom they are competing in the small sized retail loan segment. The significance of NBFCs can be gauged by the increasing share of NBFC credit to GDP, as against a declining trend visible in SCBs.

AKME FINTRADE (INDIA) LIMITED (AASAAN LOANS) STRENGTHS & STRATEGIES

1. Proven execution capabilities with a strong rural and semi-urban focus.
2. Well established Vehicle Finance, small businesses lending business.
3. Stable and experienced management team.
4. Customer centric approach and deep understanding of target customers.
5. Access to Diversified Sources of Capital and Effective Asset Liability Management.
6. Robust underwriting process and risk management policies.
7. Hub and Spoke business model that improves efficiencies and decreases costs.
8. Increase focus on Digitisation and expanding product portfolio.
9. Deepen, strengthen, and expand geographical Presence.
10. Continue to focus on small business owners and self-employed individuals.
11. Enhance their Brand Recall to Attract New Customers.
12. Leverage their Network, Domain Expertise and Data to Enhance Product Offering.
13. Leverage Technology to Grow their Business.

AKME FINTRADE (INDIA) LIMITED (AASAAN LOANS) RISK FACTORS & CONCERNS

1. Risk in relation to higher NPA as compared to peer companies.
2. Risk related to business & operational presence concentrated in the State of Rajasthan.
3. Risk related to significant dependency on their business loans and any adverse developments in this sector.
4. Risk related to additional expenses in operating in rural & semi-urban markets.
5. Risk related to non-compliances w.r.t certain intimation under SEBI listing regulation to the BSE.
6. Risk in relation to deviation in market capitalization.
7. Risk related to income tax searches & survey carried at Company premises and at its promoters.