Under the partnership, ZipLoan will drive and process unsecured retail business loans as per the credit parameters and eligibility. InCred will have 80 percent of the total loan on its books, while the remainder will be on ZipLoan’s books. The latter will also manage the entire servicing process throughout the life cycle of the loan disbursal.
Mumbai-based fintech start-up InCred has partnered with ZipLoan, an MSME lending platform. The duo aims to roll out microloans between Rs 1 lakh to Rs 10 lakh with a maximum tenure of 36 months to the Micro, Small, and Medium Enterprises (MSMEs). This comes as a relief as most of them are unable to access loans from the organized and traditional banking players.
Under the partnership, ZipLoan will drive and process unsecured retail business loans as per the credit parameters and eligibility. InCred will have 80 percent of the total loan on its books, while the remainder will be on ZipLoan’s books. The latter will also manage the entire servicing process throughout the life cycle of the loan disbursal.
The second wave of COVID-19 has negatively impacted the MSME sector maximum, which employs nearly 12 crore individuals, and accounts for 40% of the country’s GDP. This comes at a time when the sector was not able to recuperate from the first wave effectively yet. As per a survey by Care Ratings conducted between April 27 and May 11, 84% of respondents said the deadly second COVID-19 wave escalated business uncertainty. The survey also revealed that over 40% of the MSMEs will resort to borrowing in the coming months.
Source: Business World
