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Apoorv Chaudhary
by on June 2, 2021
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ZipLoan is a non-banking financial company that provides loans to small and medium-sized businesses (SME). ZipLoan Business Loan app is preferred by various business users due to its attractive interest rate, repayment tenure, and eligibility check according to suitable choice.  

Overview of ZipLoan 

The RBI-registered NBFC "Blue Jay Finlease Limited," which was established in 1996, is known as Ziploan. On the other hand, it was founded in 2015. This FinTech lender aims to provide unsecured Working Capital to small business owners in India through the internet. The Ziploan technology-backed lending network provides SMEs with all-around assistance in obtaining Business Loans in as little as three days. The entire lending process is simple and straightforward. 

Small businesses face a fundamental lack of funding, which Ziploan addresses by supplying quick cash when they need it. Ziploan is currently available in Delhi NCR, Lucknow, Indore, and Jaipur. 

Features of ZipLoan Business Loan  

The Ziploan Business Loan can be used to meet the business's working capital needs, inventory build-up, funds for day-to-day activities, and to pay critical bills and wages. A company may also get money to upgrade equipment, buy new machinery, and repair old and outdated machinery, among other things. You receive funding for all of this, which enables you to start your company. 

  • Loan amount: Small Business Loans are available in amounts ranging from one lakh to five lakhs, depending on the business's eligibility and needs. 
  • Repayment tenure: Repayment duration is flexible, ranging from 12 to 24 months. 
  • Collateral Security: This is an unsecured loan, so there is no need to put up any collateral. 
  • Interest: Depending on the credit score of the company and the business owner, interest rates vary from 23 percent to 29 percent a year (on reducing balance). 
  • Zip Score: Ziploan does not use the CIBIL Score to determine a borrower's creditworthiness. They do, however, have Zipscore, which is a comprehensive credit rating system. 
  • Processing Fee: A processing fee of 3% of the loan amount is charged. 
  • Pre-Closure and Part-Payment Costs: There are no pre-closure or part-payment charges. 

Why are people choosing ZipLoan Business Loan?  

Small business owners choose ZipLoan to solve their fundamental issues of availability. Some benefits that help the user to for using ZipLoan includes:  

  • It is a technology-enabled lending network that provides real-time funding. 
  • The method of lending is characterized by its pace and simplicity. 
  • Simple paperwork is needed. 
  • The interest rate on the business loan is competitive. 
  • There are no additional fees. 
  • They don't need a company's or firm's balance sheet to determine eligibility. 
  • The entire process of obtaining a Business Loan is completed electronically, and the customer is not required to meet in person to obtain loan approval. 

Eligibility Criteria for ZipLoan Business Loan  

ZipLoan uses the following parameters to assess the loan eligibility are as follows:  

  • The Ziploan Business Loan is available to self-employed professionals and non-professionals, proprietorship and partnership firms, and limited companies. 
  • A minimum turnover of ten lakhs is required. 
  • For amounts greater than 2.50 lakh, the previous year's ITR must be filed. 
  • Either a residential or commercial property should be owned by the owner. 
  • The company location should not be the same as the apartment. 
  • The company should have been in operation for at least two years. 
  • The creditor must have a Zipscore of at least 70. Ziploan uses a one-of-a-kind credit rating system. 
  • The applicant must be over the age of 25. 

Documents ZipLoan Business Loan  

The following documents are required for ZipLoan Business Loan are as under:  

  • PAN Card 
  • IT Returns after 2 Years 
  • Proof of Business Address 
  • Proof of Address at Home 
  • Current 12 months' bank statement 

How to apply for the ZipLoan Business Loan app?  

While applying for the ZipLoan Business Loan app, there are some following steps which are listed below:  

  • The Google Playstore is where you can get the Android version. 
  • Complete and apply the online business application form with accurate details. 
  • To expedite the processing of needed documents, upload PDFs of them. 

Their agent will process the documents and submit email and SMS updates on the status. You may also apply for a Ziploan via Afinoz and receive free loan assistance. We work with creditors before the funds are transferred to their accounts. 

How to increase the ZipLoan Eligibility?  

  • A Good Credit History: A good credit history is needed to obtain bank loans. Always pay off your credit card bills and loan EMIs on time, particularly if you plan to take out more credit in the future. A strong credit history raises the credit score and lowers the lending institution's chance of default. 
  • Loan Tenure or Period: In the beginning, choosing a longer loan tenure is preferable because it lowers the monthly EMI payment. Part prepayments may be used to reduce the loan term later, depending on the cash flow of the company. 
  • Credit Worthiness: The CIBIL Score is a scale that is used to assess a person's creditworthiness. As a result, you can still keep track of your credit score. For Ziploan business credit approval, a credit score of 700 or higher is needed. Your Zipscore, on the other hand, would be taken into account by the lender. 

Factors affecting ZipLoan Business Loan App 

  • Increased Unsecured Loans- It's important to strike a balance between secured and unsecured loans. An excessive number of unsecured loans indicates the applicant's inability to secure funds. As a result, having a larger number of unsecured loans will lower your credit score. 
  • Multiple Loan Applications- Visiting various banks in search of a loan would show up on your credit report as loan inquiries. If there are so many of these inquiries, the credit score will suffer. 
  • Delayed Payments- Maintaining a high credit score requires prompt repayment of credit card balances and current loan repayments. If you miss payments on your bills or loan payments, your credit score will suffer, making it more difficult to get a loan approved. 
  • Credit Limits- A credit card is a mechanism that can be used to make high-end transactions when cash is not readily available. It can only be used sparingly and never for anything and anything. If one draws a line up to 60% of credit card use, the credit score would speak for itself. Using the credit card to the full limit or above would lower the credit score. 

Conclusion  

The above information helps you to get the complete information of the ZipLoan Business Loan app for availing business loans at a low interest rate than other applications available in the market. You can also apply for a business loan through Afinoz.  

 

 

Posted in: Finance, Loan
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