How Does InCred Make Money? The InCred Revenue Model

InCred is a digital lending platform that aims to use technology to make the process of applying for a loan simple and hassle-free for the consumers.

Currently InCred offers the following categories of loans: Personal Loans, Educational Loans, Two-wheeler loans and SME Business loans.

In this post we discuss how the Fintech Startup InCred makes money?

InCred Founder

InCred was founded by Bhupinder Singh who was the head of the Corporate Finance division of Deutsche Bank and co-headed the Fixed Income, Equities and Investment Banking divisions for the Asia Pacific region.

InCred Revenue Model

InCred is in the business of lending to individuals and small and medium enterprises (SME).

The lending entity InCred Financial Services Limited has a Non Banking Finance Company (NBFC) license granted by RBI.

NBFCs are in the business of lending and their activities are akin to banks. However, there are key differences between banks and NBFCs in that an NBFC cannot accept demand deposits and NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself.

InCred makes money from the interest it earns on the loans it provides to individuals and small businesses.

The difference between the interest it earns on the loans extended and the interest paid on the debt funding secured by it for funding its operations, represents its net-interest income.

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