PhonePe launches secured lending platform with banks, fintech firms

PhonePe has launched secured lending products on its platform by partnering with banks, non-banking financial companies (NBFCs) and other fintech firms, it said on Thursday.

Walmart-owned PhonePe said it has more than 535 million registered users and aims to create a “powerful and seamless user experience” in the secured loans category. Customers can access to lending solutions on the PhonePe app in six major categories. mutual fund, gold, bike, car, home and loans against property, and education loan.

“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,” said Hemant Gala, chief executive officer (CEO) of PhonePe Lending. “Lenders are investing heavily in digitising the secured loan journeys and customers are adapting to the digitisation at a rapid pace.”

PhonePe has partnered with Tata Capital, L&T Finance, Hero FinCorp, Muthoot Fincorp, DMI Housing Finance, Home First Finance, rupyy, Volt Money, and Gradright for secured lending. More lenders will be added in the coming weeks. The platform has 15 active partners and aims to scale to 25 by the next quarter. Users can avail 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 journey is initiated within PhonePe’s familiar app environment, eliminating the need to navigate multiple applications, and simplifying the process for the user.

Sudipta Roy, managing director and CEO at L&T Finance, said the collaboration aims to empower individuals and families to realise their homeownership and mobility aspirations.

Vivek Chopra, chief operating officer of Retail Finance at Tata Capital, said the partnership highlights the company’s effort to boost credit penetration in India.

Bharat Lamba, co-founder and chief business officer of Volt Money, said his company is leveraging PhonePe’s extensive reach and Volt Money’s financial offerings.

“PhonePe changes the game by (taking) our service from a few thousand to millions of students,” said Aman Singh, co-founder of Gradright.