Ziploan is the trade name of an RBI-registered NBFC "Blue Jay Finlease Limited," which was incorporated in 1996. However, Ziploan was established in the year 2015. The objective of this FinTech lender is to provide unsecured Working Capital facility online to small business owners in India. The Ziploan's technology-backed lending platform extends all-round assistance to the SMEs in borrowing Business Loans in a short span of 3 days. The whole lending process is quick and hassle-free.
Ziploan solves the fundamental issue of capital for small businesses by providing easy funds when they need it. Currently, Ziploan operates in Delhi NCR, Lucknow, Indore, and Jaipur.
Why Choose Ziploan Business Loans?
Small business owners must choose Ziploan to solve their fundamental issue of capital availability. The advantage a business owner can enjoy by approaching Ziploan include-
- It is a technology-enabled lending platform which makes fast funds available in real-time.
- The lending is marked by quick and hassle-free process.
- It involves simple documentation.
- The business loan is available at competitive rate of interest.
- There are no hidden charges.
- They do not require a Balance Sheet of the company/ firm to assess the eligibility.
- The whole process of availing Business Loan is online, and the customer need not visit in person to get approval for the loan.
Salient Features of Ziploan
Purpose of loan: Ziploan Business Loan can be availed to meet working capital requirements of the business, inventory build-up, funds for day-to-day operations, for paying essential bills and salaries. A business can also get funding for upgrading machinery, purchase of new machinery and replacement of old and obsolete machinery, etc. You get funding for all that, that helps you to take the business to the next level.
Quantum of loan: Small Business Loans for 1 Lakh to 5 Lakh basis the eligibility and requirement of an individual business.
Repayment: Flexible repayment period from 12 months to 24 months.
Collateral Security: Unsecured loan; No collateral security required.
Interest: Interest rate ranges from 23 % to 29% (on reducing balance) per annum depending on the Credit Score of the business and business owner.
Zip Score: Ziploan does not rely on CIBIL Score to assess the creditworthiness of the borrower. But they have their holistic Credit Rating Process called Zipscore. Thus, if you can prove your creditworthiness, you can successfully borrow Business Loan despite a low credit rating from CIBIL or Experian.
Processing Fee: Processing fee is 3% of the loan amount.
Pre-Closure Charges: No Pre-Closure and Part-Payment charges are collected.
Types of Business Loan
There is an exponential growth in Start-Ups and Small Enterprises in the country. This has been possible with lending institutions like Ziploan, which offer financial assistance in real-time and when the business needs it the most. Business Loans are the best way to fund day-to-day operations as well as for taking up the business to the next level. But before seeking financial assistance, it is better to understand the types of loans the institution is providing.
Ziploan offers various kinds of Business Loans. They are:
Ziploan Term Loan- Small Business Loan
Purpose of loan: This loan can be used for building fixed assets, purchasingbusiness premise, purchase of machinery, and upgradation of existing machinery.
Quantum of loan: Loan amount from 1 Lakh to 5 Lakh as per the requirement of the business.
Repayment: Entire loan amount along with interest to be repaid within 12 months to 24 months.
Collateral Security: No collateral security is required.
Interest: Interest ranging from 23% to 29% p.a. depending on the Credit Score.
Processing fee: Processing fee at 3%.
Pre-closure charges: No pre-closure or part-payment charges.
Ziploan Line of credit
Purpose of loan: This loan can be utilised to bridge working capital mismatch. It can be used to procure inventory and to manage day-to-day operations.
Quantum of loan: Line of credit can be raised from 1 Lakh to 5 Lakh.
Repayment: This is a revolving limit. It is a permanent loan arrangement a business owner has with the lending institution. Interest has to be serviced every month. The principal is repaid by way of sale proceeds credited to the account. The replenished amount will again be available for utilisation. Interest will be charged only to the extent of utilisation of funds. The loan account will be renewed every year.
Interest: Interest rate range from 23% to 29% p.a. depending on the Credit Score.
Collateral Security: No collateral security required.
Processing fee: Processing fee at 3% of the loan amount.
Ziploan Equipment Loan
Purpose of loan: To procure machinery like generators and other MSME machinery.
Quantum of loan: Loan amount depends on the repayment capacity and nature of plan ranging from 1 Lakh to 5 Lakh.
Repayment: Entire loan with interest should be repaid within 12 months to 24 months.
Collateral Security: Hypothecation of assets procured out of the finance.
Interest: Interest rate ranging from 23% to 29% p.a. depending on the Credit Score.
Processing Fee: Processing fee at 3% of the loan amount.
Pre-Closure Charge: No Pre-Closure or Part-Payment charges.
Ziploan Flexi Loan
Purpose of loan:Loan can be used both for working capital requirements and for purchasing equipment. It is a kind of a pre-approved limit which the borrower can use as and when he or she requires.
Quantum of loan: Loan quantum ranges from 1 Lakh to 5 Lakh
Repayment: Flexible repayment tenure from 12 months to 24 months.
Interest: 23% to 29% p.a. depending on the Credit Score. Interest is charged only for funds utilised.
Collateral Security: Nil
Processing Fee: 3% of the loan amount
Pre-Closure Charge: No Pre-Closure or Part-Payment charges.
How to Apply for Ziploan Business Loan?
Applying for Ziploan Business Loan is very simple. Loan has to be applied online following some simple steps.
- You can download the mobile app from Google Playstore.
- Fill the online business application form with correct information and submit.
- Upload the PDFs of required documents for quick processing.
Their representative will process the documents and update the status through SMS and emails. Alternatively, you can apply for Ziploan through MyMoneyMantra and avail free loan assistance along. We assist borrowers till the amount is disbursed to their account.
Why Apply for Ziploan Business Loans at MymoneyMantra?
Though Ziploan is a technology-backed platform and loan can be applied online using their mobile app, you can consider applying for Ziploan Business Loan through MyMoneyMantra's website. As you apply through MyMoneyMantra, all the loan procedures are taken care of by our loan representatives, while you can concentrate on your business.
To apply for Ziploan Business Loan through MyMoneyMantra follow following steps:
- Go to MyMoneyMantra website and click on the Loans tab to check out the drop down menu.
- Click on the Business Loans option to go to the relevant page.
- Before proceeding further read through the FAQs and other details related to Business Loans carefully.
- You can also use the EMI Calculator to find out the expected EMI for a certain loan amount.
- Now select the lending bank/ financial institution of your choice from the options given on the page.
- This will take you to the lender specific page.
- Fill in all the relevant information required for applying for the loan and send in your application.
Once the application process is completed, and the process is initiated MyMoneyMantra representatives will follow up with you for all the documentation and forward the application to the concerned team at the bank.
Documents required for Ziploan Business Loan
The following documents are required for Ziploan Business Loan:
- Pan Card
- 2 Years' IT Returns
- Business Address Proof
- Residence Address Proof
- Bank Statement for last 12 months
Eligibility Criteria for Ziploan Business Loan
Ziploan uses the following parameters to assess the loan eligibility-
- Self-employed professionals and non-professionals, proprietorship and partnership firms and limited companies can apply for the Ziploan Business Loan.
- There should be a minimum turnover of 10 Lakh.
- Previous year's ITR must be filed for more than 2.50 Lakh.
- The owner should own either a residential property or business premise.
- The business premises should not be same as the place of residence.
- Business should have been in existence for at least 2 years.
- The borrower should meet the required Zipscore. It is a unique credit rating process assigned by Ziploan.
- The applicant should be above 25 years.
Factors affecting Ziploan Eligibility
The main factors affecting the eligibility for Ziploan Business Loan are as follows:
- Income: The business entities should have an annual turnover of 10 Lakh. The IT returns of the previous year should be at least for 2.50 Lakh, i.e., the business entity, should have made a profit of at-least 2.5 Lakh in the previous year.
- Age: Age of the promoters should be more than 25 years.
- Relationship with the Bank: If one has applied for a Business Loan earlier with Ziploan and paid back promptly, then getting another loan will be easier.
- Loan Repayment: Existing loans and Credit Card dues should be repaid promptly. It is advised to pay your entire Credit Card dues, and not just the minimum amount a lot of people pay out a minimum amount while using a revolving payment facility. This can destroy your credit rating.
- Too Many Loans: Too many loans indicate the existing financial burden on the shoulder of the borrower. Lending institutions are skeptical about such profiles as in whether they will be able to take up the additional EMI burden. Also, too many loans show the attitude of the applicant to take refuge in loans for any fund requirement.
- Credit Score: The Credit Score determines the eligibility in terms of the repayment capacity of the applicant. Nowadays, even before verifying the documents Credit Score is evaluated. Credit Score is the scale to judge one's financial credibility. Ziploan insists on Credit Score above 700 though the creditworthiness is not solely assessed through this parameter. They also have their own unique Credit Rating called Zipscore to assess the creditworthiness of the borrower.
Factors Affecting the Credit Score
Increased Number of Unsecured Loans- Maintaining a balance between secured and unsecured loans is a must. Too many unsecured loans indicate the inability of the applicant for arranging funds. More number of unsecured loans will thus bring down your Credit Score.
Multiple Loan Applications- Frequenting different banks in quest of a loan will reflect in the Credit Report in the form of loan enquiries. If such enquiries are too many then the Credit Score will be negatively impacted.
Delayed Payments- Prompt repayment of Credit Card dues and existing loan repayments will keep the Credit Score high. If there is any delay in payment of dues and loan repayments then the Credit Score will decline which will make it difficult to get a loan sanction easily.
Usage of Credit Limit- Credit Card is a tool to be made use of for high-end purchases for which immediate cash is not available. It should be used wisely; and never indiscriminately for anything and everything. If one draws a line up to 60% of the usage of Credit Card, the Credit Score will speak for it. Using the Credit Card up to the maximum level or beyond the limit will bring down the Credit Score.
Reasons for rejection of the loan proposal
It takes five years for the data in a Credit Report to change. So, if one has defaulted during the period, it will be reflected in the report, even when the dues are settled down. The reasons for the default could be many. In such cases sometimes, the loan would either be settled or written off, and these remarks would appear in the report.
These remarks make a negative impact on the Credit Score. Even later, when one's Credit Score would come back to the required level, these negative comments will be viewed critically by the lending institutions.
- Remarks like 'written off' and 'settled' can change the outlook of the lenders regarding the financial discipline of the applicant.
- If the promoter of the business is sharing accommodation with another person, then a faulty credit history of that person can have an impact on his profile. During the processing of the application if the address is found under a defaulter's list, then chances loan rejection are very high.
- The guarantor having a good Credit Score is as important as the applicant having a good score. Make the assessment of the guarantor before approaching the bank.
- If you have made too many loan enquiries and have too many unsecured loans, the bank will infer that you are a compulsive borrower. They may consider that you are in a financial distress and may not be able to repay the loan on time. In such cases the loan application may be rejected.
How to Increase the Ziploan Business Loan Eligibility?
A Clean Credit History: A clean credit history is a must for getting loans from banks. Always repay your Credit Card bills and loan EMIs on time, particularly if you seek credit in future. A good credit history improves the Credit Score and minimizes the repayment risk for the lending institution.
Loan Tenure or Period: Choosing a longer loan tenure, in the beginning, is better since it will reduce the monthly out-go towards EMI. Later, depending on the cash flow of the business, part prepayments can be used to reduce the loan tenure.
Credit Worthiness: CIBIL Score is the scale to measure one's creditworthiness. Hence you should always maintain your Credit Score. The required credit score for Ziploan business credit approval is 700 and above. However, the lender will also consider your Zipscore.
Tips to Improve Credit History
Maintaining a good credit history is very important to qualify for a loan. Not only does a good credit history help you become eligible for the loan, but you can also leverage this positive point to negotiate on interest rates and get the best deal.
- Too many loan enquiries in a short span will influence the credit history. The credit score will decline with growing enquiries. It is better to avoid frequenting lending institutions in search of the best deal to avail a Business Loan.
- A credit history is mandatory for the lending institutions to assess the credibility of the borrower. So, if a borrower has not built a credit history before applying for larger loans it will be difficult for the lenders to decide whether to consider the proposal or not.
MyMoneyMantra EMI Calculator for Ziploan Business Loan
With MyMoneyMantra EMI Calculator you can instantly evaluate EMI for your loan. All you need to share is loan interest, quantum, and tenure, in the Calculator and instantly the monthly, as well as overall repayment amount, is shared with you. The interest and the principal will be shown separately to give you an idea about the contribution towards interest and principal amount.
There is no charge for calculation on the MMM EMI Calculator. Enter the details and click the button for computing the EMI. If you find the interest payable on borrowed sum too high, then you can consider changing the loan parameters. You can try different combinations to find the best deal according to your repayment capacity.
How to use MyMoneyMantra EMI Calculator?
- Visit the MyMoneyMantra website.
- Select the EMI Calculator under the financial tools tab.
- Fill in the loan parameters like amount, repayment period, and rate of interest to calculate the EMI.
- Click on the tab calculate.
- The EMI is calculated instantly.
- Try different permutations and combinations, to arrive at an affordable EMI you seek.
Benefits of Calculating EMI before Availing a Loan
When you assess the EMI burden before applying for a loan, you are better prepared to repay the loan. You can plan your EMIs and ensure successful repayment every month. Indeed you can also plan the prepayment of loan and plan to become debt-free as soon as possible. The successful payment of loan builds your Credit Score and makes you creditworthy for future loans.
The prepayment of loan can be planned in multiple ways. You can pre-pay a lumpsum amount and reduce either the EMI or tenor. In both cases, your interest outgo would be significantly reduced.
Advantages of Pre-Paying Ziploan Business loan
- Ziploan does not collect pre-payment charges. If funds are available it is prudent to pre-close the loan since you can save a lot on the interest out-go. Depending on the business cash flow periodical part payments can be made towards the loan to reduce the EMI tenure and close the loan account earlier. This will bring down the cost of the loan drastically.
- Part payments will reduce the interest out-go since the loan will be closed earlier to the stipulated tenure and the interest will be saved on the unexpired period.
- Closing a loan account before maturity clearly indicates that the applicant is able to generate funds other than by way of borrowing from financial institutions. This boosts up your credit rating and makes you a safer prospect for the lender.
Frequently Asked Questions - Ziploan
Why apply for Ziploan Business Loan?
You can apply for Ziploan Business Loan for the following purpose:
- Meet working capital requirements like forming inventory and to fund day to day operation expenses.
- For the expansion of the business.
- For purchase of new machinery, up-gradation of existing machinery etc.
What is Ziploan, a bank, NBFC or an alternate lender?
Ziploan is technology enabled NBFC registered by RBI. They offer Small Business Loans in the fastest and simplest way. Amount will be available in the account within 3 days provided all the criteria stipulated by Ziploan are met with, and the documents are submitted as required. They are present in Delhi NCR, Indore, Jaipur and Lucknow.
Why do small business entities take loan from Ziploan?
Many small business entities are not able to satisfy all eligibility norms of major financial institutions. At Ziploan availing a Business Loan is relatively simpler and faster. The creditworthiness is not assessed by the scores given by the regular Credit Bureau, but following their Credit Rating process. The Ziploan rating system is based on the information they gather from multiple data points. This helps the lender assess the creditworthiness of the borrower more practically and efficiently.
Is Ziploan better than other banks/NBFCs?
Ziploan is better than many other banks/NBFCs because:
- One can apply for a loan online.
- Loan is disbursed within 3 business days.
- No collateral security is required.
- No pre-payment charges are levied.
All this extends complete flexibility to the borrowers. In business, liquidity of funds acts as one of the most important factors for capitalising growth.
What is the loan application process at Ziploan?
You can get your loan application processed online at Ziploan. The loan can be applied either through their app, that can be downloaded through Google Play Store or through MyMoneyMantra.
At MyMoneyMantra, you get free loan assistance, and a loan specialist will take care of all the nuances of applying for a Business Loan. The team helps you find the best loan product according to your repayment capacity.
What are the documents required for Ziploan?
The following documents are required-
- Pan Card
- Address proof of the business
- Address proof of residence
- IT returns for the last 2 years
- Bank Statement for last 12 months.
How secure is my data with MyMoneyMantra?
It is completely safe and secure to apply for loan through MyMoneyMantra. You personal data/ information including your name, mailing address, phone number, email address, Pan Number, GST number, SMS phone details, phone contacts, location, call logs, Income Tax Returns, Personal Statements, Driving Licence, Income Sources and financial information is only used by Ziploan to evaluate your application. The data is not shared with any third party. Most small businesses do not have all the necessary documents, so evaluation of data helps to streamline in-house Credit Rating Process. All the information collected will be encrypted and the transaction will be safe.
What is the duration for disbursing the loan?
After submitting the application with the required documents, the evaluation will be done. Once this is complete, the loan will be disbursed within 3 days.
How can the status of application be checked?
The status of the application can be checked in the following ways-
- By downloading the Ziploan app and signing with registered mobile number.
- By accessing their website and signing in with a registered mobile number.
- One can call their customer care team and enquire about the status of the application.
What is Ziploan Top-Up Loan?
Ziploan allows the borrower to borrow a certain amount over and above the outstanding balance in the existing loan account.
What are the benefits of Top-Up Loan?
Top-Up Loans come with a lower rate of interest and lower processing charges compared to the existing loan.
What are the eligibility criteria for Top-Up Loan?
If the tenure for the current loan is 12 months, then the Top-Up Loan can be availed after successfully paying 6 months EMI without bouncing. If the tenure for the current loan is between 18 months to 24 months, then the Top-Up Loan can be availed after successfully paying 9 months EMI without bouncing.
How to apply for Top-Up Loan when in need of funds?
You can apply for Top-Up Loan through your existing loan account or through MyMoneyMantra.
What are the eligibility criteria for Ziploan Business Loan?
The following are the eligibility criteria for Ziploan Business Loan-
- Business should have an annual turnover of 10 Lakh.
- The IT Returns of previous year should be filed for at least 2.5 Lakh.
- Business should have been existing at least for 2 years.
- The age of the promoter should be over 25 years.
- The business and residence should not be in the same address.
- Either the business premises or the residence should be owned.
Can the loan be repaid within the stipulated tenor?
Yes, loan can be paid before the stipulated tenor. No pre-closure charges will be collected.
What are the ways of paying EMI?
EMI can be paid in 3 ways-
- By post-dated cheques which will be collected by their representative.
- By directly debiting the bank account after obtaining NACH form from the applicant.
- By IMPS/NEFT.
Will CIBIL Score be required for evaluation?
Yes, CIBIL Score will be required, though it is not the only criteria to evaluate your creditworthiness. They have a unique holistic Credit Rating Process called Zipscore in which business evaluation will be done for factors beyond the CIBIL score.
Latest News and Snippets - Ziploan
SME lending platform Ziploan raises 90 Cr
Online SME loan platform, Ziploan, has raised 90 Crore in its Series B financing round led by SAIF Partners. The existing investors participating in the round are Matrix Partners India, Waterbridge Ventures and Whiteboard Capital.
Cumulatively, the company has now raised a total of 320 Crore of equity and debt funding till date. Ziploan further plans to mobilise additional 250 Crore from debt investors.
ZipLoan Launches Connect App
ZipLoan has launched a new App, Connect, for Android users. It is a B2B business networking App that enables users to list their business and products/services and connect with other traders, wholesalers, retailers, and manufacturers. The app was soft launch in July last year and already has over 50 thousand downloads.