Fntech firm ZipLoan has partnered with InCred to extend micro-loans to micro, small and medium enterprises that are unable to access financial services from traditional banking players.
“InCred and ZipLoan entered into co-lending partnership to facilitate wider and deeper reach of institutional credit in the MSME segment by leveraging each other's strengths in terms of size, scale and technology,” the company said in a statement.
The microloans will be ranging from ₹1 lakh to ₹10 lakh with tenure upto 36 months.
Under the partnership, ZipLoan will originate and process unsecured retail business loans as per jointly created credit parameters and eligibility. InCred will have 80 per cent of the total loan on its books while the remainder will be on ZipLoan’s books.
ZipLoan will manage the loan servicing throughout the loan life cycle.