Incred is web-based financial services based in Mumbai. InCred, started its operations in April 2016, through its technology platform provides personal, consumer, home, and education loans besides lending to small and medium enterprises, or SMEs. The company uses technology and data-science to make lending quick, simple and hassle-free.
Incred was founded by Bhupinder Singh also the CEO of the company who was Head of Investment Banking and Co-head of Banking and Securities for Asia-Pacific at Deutsche Bank before he thought of starting up incred.com.
What are NBFCs?
NBFC is short the Non-Banking Financial Company. These are the companies which engaged in the business of loans and advances, acquisition of shares/stocks and insurance but cannot work as a commercial bank like issuing checkbook, demand draft, debit card etc. It is mandatory for NBFCs to register under RBI(Reserve Bank of India).
In last one year, NBFC loans have grown at 16.6 percent, compared to 8.8 percent for the banking sector. This is because of the bad loan woes of commercial banks. And NBFCs are more accessible for loans, considering they lend even to consumers with zero or no credit record for underwriting.
Incred Finance is backed by former co-chief of Deutsche Bank Anshu Jain and industrialist Gaurav Dalmia and Ranjan Pai and invested around 75 million dollars in the company.
Incred Target Audience:
Incred is basically targeting the population with a family income between Rs 25,000 to Rs 1 lakh, have never taken a loan. People who don’t have much credit underwriting history attached to them. The Large portion of this Incred audience is concentrated in tier-2 and tier-3 towns.
Incred Marketing Strategies:
Just like other NBFCs like Bajaj, InCred has made multiple strategic partnerships to service customers, as a way to expand growth and scale beyond traditional branch networks and digital customer acquisition.
For home loans, it has partnered with leading developers of affordable housing projects to finance home buyers, and with popular test prep centres and career counsellors to give education loans to students going for higher studies.
The company has raised close to Rs 600 crore in equity funding. The average interest rate for the firm is in the 13 to 14 percent range.Depending on the type and amount of loan. For example:
- Home Loan: Ranges between 3 to 30 lakhs. The interest rate is 11 percent.
- Personal Loan: Ranges between 10 thousand to 5 lakh. Interest rates varies between 16 to 18 percent.
- Business Loan: Ranges from 10 lakhs to 10 crores. Interest rates varies between 13 to 14 percent.
Incred So Far:
Incred is a team of 20. The company is in partnership with more than 20 product and service companies to generate leads. Incred has disbursed 400 cr rupees in loans to 2500 customers and buyers of affordable homes, small businesses and students.
InCred aims to have a Rs 1,500 crore lending book, a team of 600 people and an average loan size of Rs 10 lakh.