Kajal Ilmi Empowering Women Through Housing Finance

Babita Sisodia, hailing from Dewas, Madhya Pradesh, found herself in a common yet challenging situation that many women in rural India face – invisibility within their own homes. Her tireless work in managing the household and caring for her family often went unnoticed, taken for granted. Financial dependence on her husband further limited her autonomy, leaving her with little to no money for personal expenses. However, Babita’s life took a transformative turn when she encountered AVIOM, a housing finance company founded by Kajal Ilmi.

AVIOM, which stands for Adhering to Vision of Inclusion of Masses, is on a mission to provide housing loans to women in rural and semi-urban areas, serving both salaried and self-employed individuals. Established in 2017 by Kajal Ilmi, who also serves as the CEO, AVIOM operates with the philosophy of being “run by women, for women, and lending to women.” The company offers loans ranging from ₹5,000 to ₹500,000, specifically for purposes such as home extensions, sanitation facilities, and renovations. With over 120 branches across 14 states, AVIOM has assembled a team of more than 55,000 women known as ‘Shaktis,’ who play a crucial role in sourcing loans for the company. To date, AVIOM has extended financial assistance to over 50,000 women.

Empowering Women Through Housing Finance:
AVIOM’s unique approach to housing finance has not only empowered women like Babita Sisodia but has also addressed critical issues such as sanitation. One of AVIOM’s distinctive features is providing loans for the construction of toilets, an aspect often overlooked by other financial lending companies. These loans have a ticket size of ₹270,000, with a loan tenure of up to 10 years and interest rates ranging from approximately 21 to 27 percent. Kajal Ilmi explains that AVIOM’s interest rate range is influenced by several factors. Since the company’s target segment primarily consists of individuals in the informal sector, assessing their income requires a surrogate evaluation, which involves home visits by AVIOM employees. This personalized approach incurs higher expenses, but it helps understand the borrowers’ income stability and repayment capacity in the absence of proper documentation.

Unlike major housing finance companies and public sector banks that offer housing loans at interest rates between 11 to 20 percent, AVIOM caters to a segment that is often overlooked by these institutions. As a result, AVIOM’s primary competitors are local moneylenders who charge exorbitant interest rates, often exceeding 60 percent on a compounded annual basis.
Fauzia Nazneen, General Manager – Credit at Svatantra Micro Housing Finance Corporation (MHFC), explains that companies like AVIOM, which offer lower ticket-size loans to customers mainly from rural areas, tend to charge higher interest rates. This is because accurately assessing the income of these borrowers is challenging due to the nature of their employment. The associated risks are much higher in such cases.

Svatantra MHFC, which operates in rural and semi-urban areas, offers interest rates between 13 and 18 percent for various housing-related purposes. Nazneen highlights that microfinance institutions have a strong presence in rural areas because they understand the needs of these customers better than institutions primarily focused on urban regions. AVIOM’s impact goes beyond providing housing loans. The company’s model encourages women to be co-owners of the properties for which they receive loans. This empowerment not only enhances their eligibility for higher loan amounts but also offers them a sense of security, particularly in regions where women may face domestic violence and threats of eviction.

Furthermore, AVIOM’s unique recruitment and training program, known as the Shakti movement, empowers women in rural areas to become financial literacy ambassadors and sourcing agents for the company. Babita Sisodia, along with many others, has become a branch manager through this initiative, mobilizing thousands of women in her community. Kajal Ilmi’s journey from the corporate world to entrepreneurship has led to the creation of AVIOM, a market leader in its niche segment. The company has raised multiple rounds of funding, attracted equity partners, and secured substantial debt from prominent lenders. It is currently profitable, with significant revenue generation in recent quarters. As AVIOM continues to expand its reach, the company has set ambitious goals. It aims to fund over a lakh toilets by the end of 2023 and increase the number of Shakti partners to over three lakh within the next few years. Kajal Ilmi envisions AVIOM becoming a listed company by 2026, aiming to become the largest rural women-centric employer in India.

In conclusion, AVIOM, under the leadership of Kajal Ilmi, has made a profound impact by providing housing loans to women in rural and semi-urban areas. The company’s commitment to empowerment, sanitation, and financial inclusion has transformed the lives of countless women like Babita Sisodia, offering them newfound independence and opportunities for growth.