Digital lending startup ZestMoney has announced a partnership with Digit Insurance to offer insurance against equated monthly installments (EMIs).
According to a statement, the partnership integrates the digital capability of ZestMoney to provide EMIs and Digit’s insurance offerings to relieve customers of debt in unforeseen circumstances.
This policy will cover the cost of EMIs in the event of hospitalisation, death or permanent disability.
The insurance product is specifically designed for ZestMoney’s customers who can avail of it while applying for a loan on the digital platform, the statement added.
Zest Money offers a credit limit to customers through a digital loan application process which can be used to shop online and in-store across all ZestMoney partners including Amazon, Flipkart, Myntra, MakeMyTrip and Xiaomi, among others.
“While our EMIs make life affordable, we saw a need to support our customers in case of unforeseen circumstances. We would be partnering with more companies to provide customised EMI and loan protection plans to our customers,” said Lizzie Chapman, co-founder and chief executive officer at ZestMoney.
ZestMoney was founded by Chapman, Priya Sharma and Ashish Anantharaman in 2015. The company allows online shoppers to open accounts instantly with banks. Users can then avail of EMIs to make purchases without using a credit card. The startup gathers data from various sources, including Credit Information Bureau India Ltd (CIBIL).
Owned by Camden Town Technologies Pvt. Ltd, the startup had raised $20 million (Rs 140 crore then) in its Series B round led by venture capital firm Quona Capital in April.
Digit, a general insurer, has partnered with companies such as Flipkart, Paytm, Cleartrip, PolicyBazaar and Tanishq, among others, to sell mobile phones and flight tickets. It also offers products for cars and jewellery.
Go Digit Infoworks Services Pvt. Ltd, the parent of Digit Insurance, had raised $45 million from Fairfax Holdings in July last year.