InCred is a non-banking financial company (NBFC) in India that offers various financial solutions including personal loans, education loans, SME loans, and other credit-related services. The company was founded with the goal of using technology to make financial services more accessible and efficient.
Incred Finance is a private NFI (NBFC) in India. The company focuses on Consumer Loans - Personal Loan, Educations Loans and SME Business Loans. It is headquartered in Mumbai, Maharashtra. It was founded by Bhupinder Singh, ex-head of the Corporate Finance division of Deutsche Bank.
Credit Score: Lenders often consider the personal and/or business credit scores of the applicants. A higher credit score generally indicates a lower risk for the lender.
Business Financials: Lenders may require detailed financial statements, including profit and loss statements, balance sheets, and cash flow statements, to assess the financial health and stability of the business.
Time in Business: Many lenders prefer to work with businesses that have been operating for a certain period of time, typically at least 1-2 years. This demonstrates stability and a track record.
Revenue and Income: Lenders often want to see a certain level of annual revenue to ensure that the business has the capacity to repay the loan.
Business Plan: For startups or businesses seeking expansion, a well-defined business plan outlining how the loan funds will be used and how they will contribute to the growth of the business can be important.
Collateral: Some loans may require collateral, which is an asset that the lender can take ownership of if the borrower defaults on the loan. This provides additional security for the lender.
Debt-to-Income Ratio: Lenders assess the borrower's ability to take on additional debt by looking at the ratio of their existing debts to their income.
Industry and Purpose: The type of industry your business operates in and the purpose of the loan can also affect eligibility. Some industries might be considered riskier than others.
Legal and Regulatory Factors: Lenders might consider factors such as the legal structure of the business, any outstanding legal or tax issues, and compliance with relevant regulations.
Personal Guarantees: Small business owners might be required to provide a personal guarantee, making them personally responsible for the loan if the business is unable to repay.
Ownership and Management: Lenders could assess the experience and qualifications of the business's owners and management team.
Interest Rate: This is the cost of borrowing the loan amount. It's usually expressed as an annual percentage rate (APR). The interest rate can vary based on factors such as the loan amount, the term of the loan, the borrower's creditworthiness, and prevailing market rates.
Origination Fee: Some lenders charge an origination fee, which is a one-time fee for processing the loan application and setting up the loan. It's typically a percentage of the loan amount.
Processing Fee: This fee covers the administrative costs associated with processing the loan application. It might cover things like credit checks, documentation, and verification.
Late Payment Fee: If you miss a loan payment or make a payment after the due date, the lender might charge a late payment fee.
Business Plan: A detailed business plan outlining your company's operations, growth strategy, and financial projections.
Business Financial Statements: Including profit and loss (income) statements, balance sheets, and cash flow statements for the past few years, if applicable.
Personal and Business Tax Returns: Typically for the past few years to assess your personal and business financial history.
Bank Statements: Recent bank statements for your business accounts to show cash flow and financial stability.
Proof of Business Ownership: Documentation that proves your ownership of the business, such as business licenses, articles of incorporation, partnership agreements, or operating agreements.
Personal Identification: Copies of government-issued identification documents, such as driver's licenses or passports, for all business owners.
Business Legal Documents: Contracts, agreements, leases, and other legal documents related to your business operations.
Collateral Documentation: If the loan requires collateral, documents proving ownership and value of the collateral (such as property deeds or vehicle titles) will likely be needed.
Business Debt Information: Details of any existing business loans or debts.
Use of Funds: Information about how you intend to use the loan funds. This could be outlined in your business plan.
Industry-Specific Documentation: Certain industries might require additional documentation. For example, healthcare businesses might need licensing documentation, while construction companies might need building permits.
Business References: Contact information for business references who can vouch for your business's credibility and ability to repay the loan.
Financial Projections: Forecasts of your business's future financial performance, including expected revenues, expenses, and profits.
Personal Financial Statements: Especially for small businesses, lenders might request personal financial statements from business owners to assess their personal financial stability.
Management Profiles: Information about the management team, their qualifications, and experience.
Any Additional Information: Lenders may request additional documentation depending on their specific underwriting process.
Remember that providing accurate and complete documentation is essential for a smooth loan application process. Always confirm the document requirements directly with the lender you're applying to, as they can provide the most accurate and up-to-date information for their specific loan application process.