Walmart-backed PhonePe on Thursday launched collateralized lending products on its platform in partnership with a network of banks, non-banking financial companies (NBFCs) and fintechs.
PhonePe’s 535 million registered users now have access to loan solutions across six major categories: Mutual Fund Loans, Bike Loans, Car Loans, Home Loans, Gold Loans and Education Loans, right on the PhonePe app.
PhonePe has partnered with lenders such as Tata Capital, L&T Finance, Hero FinCorp, Muthoot Fincorp, DMI Housing Finance, Home First Finance, Avanse, rupyy, Volt Money and Gradright. The digital payments company plans to add more lenders in the coming weeks.
The platform currently has 15 active partners and is expected to grow to 25 in the next quarter. Users can avail the loan offering in the existing 'Loan' section of their PhonePe app, select the desired loan category and choose from a list of lenders.
PhonePe states that the loan application process is initiated within PhonePe’s app, eliminating the need to navigate through multiple applications and simplifying the process for the user.
“This gives us the opportunity to connect lenders and millions of our customers across the country on a single platform to meet their financial needs. Lenders are investing heavily in digitizing the secured lending processes and customers are adapting to digitization at a rapid pace. We believe now is a great time to revolutionize the secured lending product experience for the customers engaging with the lending ecosystem,” says Hemant Gala, CEO, PhonePe Lending.
“By leveraging the combined expertise and resources of both companies, we are able to offer best-in-class solutions tailored to the diverse needs of customers seeking financing for their home or two-wheeler,” said Sudipta Roy, Managing Director and CEO, L&T Finance.
“This collaboration underscores our commitment to helping individuals and families achieve their homeownership and mobility dreams. Customers can look forward to streamlined processes, competitive pricing and personalized services that focus on their financial well-being,” says Roy.
“Our partnership with PhonePe aims to expand the accessibility of our lending services to their user base. This partnership not only strengthens our digital approach but also underlines our efforts to increase credit penetration across India,” says Vivek Chopra, COO – Retail Finance at Tata Capital.
PhonePe Group has expanded its business into financial services, insurance, lending, wealth management as well as new consumer technology venture Pincode, a hyperlocal e-commerce company. In February, PhonePe launched the Indus Appstore for Android devices. The app store allows users to discover apps in 12 Indian languages. PhonePe had made its foray into stock trading last year.
In just seven years, the company has grown rapidly to become India's leading consumer payments app with over 535 million registered users and a digital payments network of over 39 million merchants. PhonePe processes over 255 million transactions daily.
