PhonePe has introduced secured lending products on its platform, collaborating with banks, non-banking financial companies (NBFCs), and other fintech firms, the company announced on Thursday.
The Walmart-owned digital payments company, boasting over 535 million registered users, aims to create a “powerful and seamless user experience” in the secured loans category. Customers can now access lending solutions on the PhonePe app across six major categories: mutual funds, gold, bike, car, home and loans against property, and education loans.
“This initiative allows us to connect lenders with millions of our customers across the country on a single platform to meet their financial needs,” said Hemant Gala, CEO of PhonePe Lending. “Lenders are investing heavily in digitising secured loan journeys, and customers are rapidly adapting to this digital shift.”
PhonePe has partnered with prominent financial institutions including Tata Capital, L&T Finance, Hero FinCorp, Muthoot Fincorp, DMI Housing Finance, Home First Finance, rupyy, Volt Money, and Gradright for its secured lending offerings. The platform currently has 15 active partners and plans to expand to 25 by the next quarter. Users can avail themselves of the facility under the existing ‘loan’ section on their PhonePe app, select their desired category, and choose from a list of lenders. The loan application process is initiated within the familiar PhonePe app environment, streamlining the experience and eliminating the need to navigate multiple applications.
Sudipta Roy, Managing Director and CEO at L&T Finance, highlighted the collaboration’s aim to empower individuals and families to achieve their homeownership and mobility goals. Vivek Chopra, Chief Operating Officer of Retail Finance at Tata Capital, emphasized the partnership’s role in enhancing credit penetration in India. Bharat Lamba, Co-founder and Chief Business Officer of Volt Money, remarked on leveraging PhonePe’s extensive reach to expand their financial offerings. Aman Singh, Co-founder of Gradright, noted that PhonePe significantly expands their service from thousands to millions of students.
This strategic move by PhonePe is set to revolutionize the secured lending market in India by providing customers with easy access to a wide range of financial products through a single, user-friendly platform.
