Zomato, InCred collaborate for loans with no processing fee to restaurants

Zomato has partnered with InCred for extending loans with zero processing fee to cash-strapped restaurant associated with the food delivery platform. The scheme will be effective for credit availed from from September 1, 2021 to October 31, 2021.

The partnership will support over 50,000 businesses working with Zomato to overcome any credit crunch with tailor-made solutions, a company statement said.

The eligibility criteria for availing this scheme requires the restaurant partners to be listed on Zomato for at least six months and have a monthly business of ₹30,000 to benefit from the offer.

The restaurant and hospitality industry has been hard hit by Covid-19 restrictions and two lockdowns within a year. As the economy opens up, business has bounced back to pre-Covid levels. Nevertheless, the restaurants continue to face working capital crunch due to factors like shortage of staff, different rules in different states, vaccination of staff, etc.

“Millions of loans are sanctioned in India every day but dated policies make financial inclusion a problem for many. At InCred we have always been determined to make credit more accessible,” said Saurabh Jhalaria, CEO, SME Business, InCred.

“Currently, the industry charges 2 to 3 per cent of the total loan amount as processing fees, which can be a deterrent and a dampener for those really in need of taking a business loan. Our partnership with Zomato to extend zero processing fee loans will help such small businesses and restaurants to bounce back,” he added.