Fintech major PhonePe has launched secured loans in partnership with a bunch of non-banking finance companies (NBFCs).
The Walmart-owned company is offering six credit products to its customers to begin with – loan against mutual funds, gold loan, two-wheeler and four-wheeler loans, home loan, loan against property and education loan.
PhonePe has a base of about 535 million users and NBFCs are hoping to tap into this user base with their credit offerings.
PhonePe has partnered with Tata Capital, L&T Finance, Hero FinCorp, Muthoot Fincorp, DMI Housing Finance, Home First Finance, rupyy, Volt Money, Gradright, with more lenders to be added in the coming weeks.
The platform currently has 15 active partners and aims to scale to 25 by the next quarter. Users can avail of the loan facility under the existing loan section on their PhonePe app, select their desired loan category, and choose from a list of lenders.
“This provides us with 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 digitising the secured loan journeys and customers are adapting to the digitisation at a rapid pace. We believe it’s a great time to revolutionise secured lending product experience for the customers working with the lending ecosystem,” said Hemant Gala, CEO, PhonePe Lending.
The launch comes at a time when the Reserve Bank of India has asked consumer lending platforms to go slow on unsecured lending. Large NBFCs that have access to capital are looking to partner with fintechs to source customers looking to get secured loans.