Digital Lending Platform ZipLoan Partners With InCred To Roll Out Microloans For MSMEs
ZipLoan, a digital lender providing credit solutions for the working capital needs of MSMEs, has partnered with Mumbai-based fintech startup InCred to roll out microloans between Rs 1 lakh and Rs 10 lakh to help MSMEs.
The tenure of the loans will last up to 36 months and will help Micro, Small, and Medium Enterprises (MSMEs) that are unable to access loans from traditional banking players.
As part of the partnership, ZipLoan will drive and process unsecured retail business loans as per jointly created credit parameters and eligibility.
Started by Kshitij Puri and Shalabh Singhal, ZipLoan is an RBI registered NBFC that provides digital lending assistance for the working capital needs of MSMEs.
Talking about the partnership, Kshitij Puri, MD and CEO, ZipLoan, said,
“Our partnership with InCred started at the beginning of 2021, and now, we intend to scale it up further. We believe it will help us provide the necessary financing to the MSME segment, which has always been devoid of the same. The MSME segment is the backbone of the Indian economy, and for us to be a $5 trillion economy by 2025, ensuring the growth of this sector is paramount.“
Also, as part of the partnership, InCred will have 80% of the total loan on its books, while the remainder will be on ZipLoan’s books. ZipLoan will also manage the entire servicing process throughout the life cycle of the loan disbursal.
The MSME lending platform, ZipLoan, claims to have disbursed close to INR 400 crores (USD 53 million) of business loans to more than 10,000 customers over the last five years.
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