At a time when the Indian digital lending industry is hit hard by the lockdown induced by COVID-19, a Mumbai-based non-bank financial company, InCred announced the acquisition of an unsecured loan provider, Qbera, to a valuation close to 15 million dollars. . The acquisition is touted as the new development in the country’s lending sector facing foreclosure.
Launched in 2017, Bengaluru-based Qbera offers short-term personal loans of up to Rs 15 lakh, ranging from 12 to 60 months, to salaried people who meet several criteria. It charges an annual interest rate of 11.99 to 35.99 percent, or APR, on the money buried, and an additional administration fee of 1 to 5 percent, according to its website. Financial institutions such as IndusInd Bank, RBL Bank and Fullerton, were its lenders.
With the acquisition of Qbera, InCred has now entered a platform business, a model that operates its services with two or more interdependent groups. InCred maintains that Qbera will be made easier with its digital distribution power, as well as access to full loan origination capabilities and risk-sharing partnerships with other financial institutions. Qbera founder Aditya Kumar joined InCred to lead the personal lending platform and verticals, while Vice President of Products Anuj Sachdev took on an advisory role.
“We are convinced of the significant value that the Qbera platform will generate as part of the InCred group,” said the statement from Bhupinder Singh, founder of InCred. The digital lending platform, InCred, offers personal, educational and two-wheeled loans, as well as loans to SMEs.
Notably, digital loan companies are required to look for documents – such as Aadhaar card, pan card, voter ID card, as well as a company membership letter, employee card, pay slips for the last three months, bank statements, etc. – which must be submitted via smartphone on their mobile application. However, due to the Covid-19 induced foreclosure, most businesses have now stopped lending to new customers to avoid bad debts, and only provide services to existing customers who have the potential to repay. the loan.