Zavo, India’s leading RepayTech, has announced the launch of its AI-powered Settlement Marketplace, a first-of-its-kind digital platform designed to make loan settlements faster, fairer, and free from harassment, thus making a pivotal shift in India’s debt-resolution framework.

The platform has emerged at a time when India’s retail credit base has surpassed 100 million borrowers. Despite this growth, non-performing assets remain at around Rs 5 lakh crore, and defaults continue to rise in the current system, which is plagued by slow and opaque settlement processes that heavily favor lenders.

Zavo is addressing the increasing national crisis of borrowers who are anxious about overdue EMIs, while lenders are struggling to recover stressed assets through fragmented, costly, and inefficient methods.

The new marketplace aims to resolve the settlement issue with transparency and repayment intent data by openly listing defaults and receiving instant counteroffers from lenders.

Also Read| Is the AI Revolution Built on Genius or on Gimmicks?
Founded to support India’s expanding base of first-time credit users, Zavo has built a community that now helps borrowers navigate the complexities of repayment, defaults, and financial stress. The Settlement Marketplace replaces the current patchwork of phone calls, agents, and unpredictable negotiations with a unified, AI-driven framework.

Zavo’s behavioural repayment intent score is trained on patterns across millions of EMI payments, which helps lenders assess a borrower’s willingness and capacity to settle, while ensuring that consumers receive fair offers and a dignified pathway out of default.

“For years, India lacked a structured, humane system for settlements. Our internal data shows that over 70% of retail borrowers who default do so because of life disruptions not because they are unwilling to pay. Yet the absence of transparency leaves them facing harassment, inflated demands, or costly middlemen,” said Kundan Shahi, Founder & CEO of Zavo.

Also Read| Trump Launches “Genesis Mission” to Fast-Track America’s AI-Driven Scientific Breakthroughs

Borrowers can upload their loan details directly and receive competitive settlement options that comply with legal and regulatory standards. Zavo has already processed claims worth ₹1,100 crore across 223 lenders, with 43 lenders actively engaging in real-time bidding for overdue accounts.

From offer to closure, each step is recorded on the platform, eliminating hidden fees, off-record conversations, and third-party harassment.

Zavo’s marketplace addresses a systemic flaw in loan settlements in India, which occur through isolated, one-on-one interactions where borrowers have limited leverage and lenders face high recovery costs.
By consolidating both sides into a single negotiation environment, Zavo accelerates resolution timelines, brings consistency to settlements, and establishes fairness as a default feature rather than an exception.

Also Read| Sustainability in Tech Infrastructure: A Mere Buzzword?
Looking ahead, Zavo plans to deepen lender participation, enhance borrower protections, and introduce more AI-powered features to ensure smoother recoveries for financial institutions without compromising consumer dignity.

In long-term, Zavo aims to create a nationwide community where EMI payers are not treated as defaulters but as individuals navigating temporary financial distress and lenders can recover dues in an efficient, data-driven manner.