We believe that banks are primarily servicing the needs of affluent, upper middle class and middle class retail customers. At Affirmative, we shall aim to democratise consumer credit by servicing the under-served yet credit worthy customers. We shall forge deep relationships with fin tech partners that shall originate loans through multiple credit products – personal loans, consumer durable loans and student loans. Technology and alternative data sources, powering our credit engine, shall enable us to offer a risk based pricing to our customers.
SMEs contribute to 40% of India’s GDP and 50% of India’s exports and yet there is a big gap in demand and supply for SME credit. Banks primarily focus on corporate loans and have restrictive lending policies with inflexible collateral requirements for SMEs. The demand is currently met by informal financiers at crippling interest rates that bring the borrower into a debt spiral. At Affirmative, through specialised fin tech partners, we aim to bring about a balance with innovative, flexible and risk based credit programs.