Jio Finance, the lending arm of Jio Financial Services, has started its lending operations with three products--personal loans, consumer durable loans and merchant trade credit facility.
The lender is offering digital personal loans of up to ₹3 lakh through the Jio Finance and MyJio mobile applications to salaried or self-employed borrowers aged 23-58 years. Applicants need to have a PAN card, Aadhaar card and Aadhaar-linked mobile number.
Under consumer durable loans, Jio Finance is offering finance for high purchase items such as mobile phones, AC, camera, etc, which will be available with a no-cost EMI option at the merchant websites. Both salaried and self-employed individuals aged between 21 and 60 years can apply for these loans.
“Jio Finance offers Consumer Durable Loans that are typically subsidised by manufacturers, OEMs (Original Equipment Manufacturers), or dealers, which allows customers to benefit from no-cost EMI options. However, customers are responsible for paying processing fees,” the company said on in a FAQ on its website.
Financing inventory purchase
Jio Finance has also started offering loans for business, where it extends unsecured merchant trade credit facility to registered merchants of JioMart Partner - B2B Wholesale, to finance inventory purchases.
In its Q2 FY24 investor presentation, the company had said it had launched personal loans for salaried and self-employed individuals with an end-to-end digital journey, under the MyJio app in Mumbai, and consumer durable loans across 300 stores.
It had then said that it had plans to start business and merchant loans for self-employed individuals, sole proprietors and small business entities; automobile loans, home loans, and loans against shares.
JIo Financial Services is a systemically important non-deposit-taking NBFC and has recently sought the RBI’s approval to convert to a core investment company (CIC) from an NBFC. Following the conversion, Jio Financial will become the holding company for its consumer-facing subsidiaries Jio Finance, Jio Insurance Broking, Jio Payment Solutions, and Jio Payments Bank--the JV with State Bank of India.
It already offers insurance broking services for car, bike, health and life insurance, and payments services solutions under Jio Payments Bank and JioPay Business.