Zavo Launches AI-Powered Settlement Marketplace to Streamline Loan Resolution in India

Zavo, a RepayTech platform focused on debt-resolution technology, has announced the launch of its AI-powered Settlement Marketplace. The digital system is designed to make loan settlements quicker, more transparent, and free from harassment, marking a shift in how retail debt resolution is carried out in India.

The launch comes at a time when the country’s retail credit base has crossed 100 million borrowers. Although credit penetration has grown, non-performing assets remain around ₹5 lakh crore, and defaults continue to increase. Existing settlement processes are slow, opaque, and largely structured in a way that favours lenders, leaving borrowers with limited support. Zavo aims to address this situation by creating a unified framework for resolution at a time when many borrowers face overdue EMIs, and lenders deal with stressed assets through fragmented and costly systems.

Zavo has processed claims worth ₹1,100 crore across 223 lenders, with 43 lenders already using the platform for real-time bidding on overdue accounts. By consolidating both sides of the settlement process, the marketplace aims to reduce resolution timelines and standardise settlement outcomes while giving borrowers a more structured means of exiting default.

The company intends to expand lender participation, introduce additional AI-led tools, and strengthen borrower protections. Over the long term, Zavo aims to develop a nationwide community in which EMI payers are supported through temporary financial distress, while lenders can recover dues through an efficient and data-led process.