Dutch development bank FMO has invested USD35 million in InCred, a diversified Non-Banking Financing Company (“NBFC”) headquartered in Mumbai, India that provides SME business loans, education loans, two-wheeler loans, home loans and consumer loans. InCred leverages on latest technology and data science to increase access to finance and make financial services for its customers quick and easy. By providing formal credit to underbanked (M)SMEs, individuals and through on-lending to MFIs/NBCFs,
InCred supports inclusive economic growth. India has over 55 million MSMEs, which are leading contributors to the nation’s employment and GDP. The Company started lending in 2017, is rapidly growing and profitable since its first year of operations.
FMO’s equity investment is to support the increased outreach of the company, providing the capital buffer needed to grow InCred’s loan book. As part of regulatory compliances, InCred adopted the Fair Practices Code. The guidelines cover principles to disclose terms and conditions of loans, adopting noncoercive recovery methods, a grievance mechanism and privacy guidelines.
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