Unity Small Finance Bank has acquired Aviom India Housing Finance Private Limited for an undisclosed amount. This transaction marks a significant step for Unity Small Finance Bank as it expands its presence in India's affordable housing finance sector. Aviom India Housing Finance specializes in providing housing loans to customers in semi-urban areas, particularly serving those in the informal and semi-formal income sectors.
Aviom India Housing Finance targets a crucial market segment, operating between traditional housing finance and microfinance. The company caters to customers with an average combined family income of INR 20,000 per month, often women from informal income sectors who may lack extensive documentation. A key policy of Aviom ensures that the woman of the house is always the primary applicant for loans, promoting financial inclusion and empowerment. It is noted that Aviom India Housing Finance has been undergoing a corporate insolvency resolution process prior to this acquisition.
For Unity Small Finance Bank, the acquisition of Aviom India Housing Finance is strategically aligned with its objectives to deepen its reach into underserved segments of the Indian financial landscape. The move is expected to create synergies by combining Unity's broader banking infrastructure and resources with Aviom's specialized expertise and established customer base in affordable housing. This integration will allow Unity to leverage Aviom's unique underwriting model and extensive knowledge of the specific housing needs of semi-urban populations.
The combined entity is poised to offer a more comprehensive suite of financial services, aiming to enhance access to credit for low and middle-income households. This acquisition is anticipated to strengthen Unity Small Finance Bank's portfolio and expand its footprint in the inclusive finance space, fostering greater financial stability and housing opportunities for a broader section of the Indian populace.