InCred Financial Services: Empowering India’s Lending With Technology And Innovation

Introduction: Incred Financial Services

InCred Financial Services Ltd, founded in 2017 and headquartered in Mumbai, is a privately held non-banking financial company (NBFC) that leverages advanced technology and data science to provide customized lending solutions. The company caters to a diverse customer base, including individuals and small and medium enterprises (SMEs), offering a range of financial products tailored to meet their unique needs. InCred’s commitment to innovation and customer-centricity has established it as a trusted financial partner in India’s competitive lending landscape.

The company took a significant step in 2021 by merging with KKR India Financial Services, a prominent provider of structured funding and mezzanine financing. This merger strengthened InCred's capabilities, allowing it to expand its loan offerings across various categories, including personal loans, education loans, and MSME loans. As of March 2024, InCred reported an impressive Assets Under Management (AUM) of INR 9,039 crore, reflecting its rapid growth and strong financial foundation. With its focus on technology-driven solutions and customer empowerment, InCred continues to shape the future of lending in India.

Board Of Directors Of Incred Financial Services

InCred Financial Services Ltd boasts a diverse and experienced Board of Directors, comprising individuals with extensive expertise in finance, technology, and management. The board plays a critical role in guiding the company’s strategic direction, ensuring governance, and driving growth.

List of Board of Directors:

1. Mr. Bhupinder Singh – Founder and Group CEO
2. Mr. Anil Nagu - Non Executive Director
3. Mr. Rohan Suri - Non Executive Director
4. Mr. Vivek Anand PS - Non Executive Director
5. Mrs. Rupa Vora - Independent Director
6. Mr. Karnam Sekar - Independent Director
7. Ms. Sunita Gupta - Independent Director
8. Ms. Ambika Bisla - Independent Director
9. Dr. Sankaran Nair Rajagopal - Independent Director

Products Offered By Incred Financial Services

InCred provides a diverse range of lending solutions tailored to meet the financial needs of individuals and businesses. These products are designed with a focus on accessibility, flexibility, and customer convenience. Below are the key products offered by InCred:

1. Consumer Loans

• Personal Loans:
  InCred offers personal loans of up to INR 10 lakh, catering to salaried customers. These loans come with flexible repayment options, with a maximum tenor of 7 years, and are provided at an average yield of 24%. They are ideal for managing immediate financial needs, such as medical emergencies, home renovations, or travel expenses.

2. Education Loans

• Student Loans:
  InCred supports Indian students pursuing international education by providing loans of up to INR 1 crore. These loans have a maximum repayment period of 15 years (180 months) and an average yield of 12.6%. They cover tuition fees, living expenses, and other associated costs, making higher education more accessible.

3. MSME Loans

• Anchor-Backed Loans:
  InCred offers secured and unsecured loans for small and medium enterprises (SMEs) to support their working capital and business growth needs. Loan amounts go up to INR 10 crore, with an average yield of 15.6%.
• Funding For NBFCs:
  InCred also lends to RBI-regulated NBFCs with a significant proportion of liquid investments, further enhancing liquidity in the financial ecosystem.

By offering tailored financial products, InCred ensures that individuals and businesses, especially those underserved by traditional banks, have access to reliable and efficient credit solutions.

InCred's Distinctive Approach To Lending

InCred Financial Services Ltd stands out in the lending landscape by blending traditional financial expertise with a modern, customer-centric approach. The company’s commitment to accessibility and flexibility is evident in its diverse range of products tailored to meet the varied needs of individuals, students, and MSMEs.

A key differentiator for InCred is its seamless service delivery. By integrating streamlined processes and leveraging financial expertise, the company ensures that loans are accessible to a broad spectrum of customers, from salaried individuals seeking personal loans to MSMEs requiring working capital. The focus remains on delivering fast, efficient, and tailored financial solutions, which has helped InCred build trust and expand its customer base.

In addition to its innovative lending practices, InCred’s ability to merge financial services with a focus on social and economic impact underscores its unique value proposition. Its education loans empower Indian students to pursue global opportunities, while its MSME-focused products support the growth of small businesses, driving local economies.

Key Strengths Of Incred Financial Services

1. Strong Capitalisation:
   InCred has successfully raised capital from both current and new investors and is backed by well-known institutions like IDFC Private Equity, Paragon Partners, OAKS Asset Management, and the Netherlands Development Finance Company.
2. Experienced Leadership:
   The company is led by experienced professionals, including CEO Mr. Bhupinder Singh, who has over 20 years of industry experience. Previously, he was the head of Corporate Finance at Deutsche Bank for the Asia-Pacific region. The Group CFO, Mr. Vivek Bansal, has also been recognized as one of the Top 10 CFOs in Asia by CEO Insights Asia.
3. Diverse Loan Portfolio:
   InCred's loan portfolio is well-diversified, with 38% in personal loans, 10% in secured school financing, 16% in student loans, 10% in lending to other NBFCs, and 19% in business loans backed by anchors or escrow.
4. Smart Use of Technology:
   InCred makes good use of its technology platform to process customer data efficiently. This ensures a smooth and fast loan approval process, which can be completed remotely for added customer convenience.

Financial Snapshot Of Incred Financial Services

Source: Audited financial statements of FY’24 and credit rating reports² of Incred Financial Services Ltd. and management information.

To arrange the capital, Incred also offers corporate bonds. These bonds from the company are secured and are rated by the credit rating agencies. On Grip Invest, investors invested in CRISIL ‘AA-’ rated bonds of the company that offered fixed returns of up to 9.7%. To invest in similar, rated, regulated and secured corporate bonds sign-up on Grip Invest today and start earning fixed returns:

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References:

1. Annual Report of Motilal Oswal, Accessed from: https://www.motilaloswalgroup.com/Investor-Relations/Financial-Report/Annual
2. CRISIL, Accessed from: https://tinyurl.com/incredrating

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