Au Fin Debt

completed

Au FINANCIERS (INDIA) LIMITED (Au or the Company) is a regional non-banking finance company (NBFC), operating in the low income state of Rajasthan and other states such as Maharashtra, Gujarat, Madhya Pradesh, Punjab, Goa, Chhattisgarh, Delhi, Himachal Pradesh and Haryana. It primarily originates loans which are classified under priority sector and agriculture lending as per Reserve Bank of India (RBI) guidelines. These loans are targeted at segments that find it challenging to access bank financing. Au originates vehicle loans, small business loans against collateral mainly in semi-urban and rural areas. Au offers MSME loan with a ticket size of INR0.2-5.0 million and tenor of 5-10 years, for income generating activities of micro and small manufacturers and service enterprises, and agriculture based SMEs. The clientele include truck/ tractor body manufacturer, auto ancillary units, brick making units, carpenters, general provision stores, fabrication units, schools and other educational institutions, etc. The Reserve Bank of India (RBI) on 16th September, 2015 granted ‘in principle’ approval to Au to set up as a Small Finance Bank (SFB) aimed at overall Financial inclusion in the country by channeling credit to unreached, small marginal farmers and small business units in Rural India. The proposed investment is consistent with the World Bank Group’s India Country Partnership Strategy (CPS) as it aligns with the engagement areas of (i) Inclusion – by enhancing private investment in the low income states (ii) Transformation – through job creation by supporting the labor intensive MSME segment and (iii) Integration – giving increased access to financial services in Tier II and Tier III cities