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.
PhonePe expanded its loan distribution offerings with the launch of secured lending products on its platform. PhonePe, partnering with a network of trusted banks, non-banking financial companies (NBFCs), and fintechs, aims to create a powerful and seamless user experience in the secured loans category.
Customers can gain access to lending solutions directly within the PhonePe app across six major categories: mutual fund loans, gold loans, bike loans, car loans, home loans and loans against property, and education loans.
PhonePe has partnered with top lenders such as Tata Capital, L&T Finance, Hero FinCorp, Muthoot Fincorp, DMI Housing Finance, Home First Finance, Rupyy, Volt Money, and 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. 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.
Hemant Gala, CEO, PhonePe Lending, said, “Lenders are investing heavily in digitizing the secured loan journeys, and customers are adapting to the digitization at a rapid pace. We believe it’s a great time to revolutionize the secured lending product experience for the customers working with the lending ecosystem.”
Bharat Lamba, Co-Founder and Chief Business Officer, Volt Money, said, “Through this partnership, we are leveraging PhonePe's extensive reach and Volt Money's unique and seamless financial offerings to empower mutual fund investors with a convenient way to access funds at low cost for various purposes, such as personal needs, working capital, or emergencies, while still creating long-term wealth by staying invested in mutual funds.”
The launch of PhonePe is coming at a time when consumer lending platforms have been asked by the central bank to go slow on unsecured lending. Expressing caution, RBI Deputy Governor Swaminathan J. recently highlighted that over-reliance on unsecured lending would bring grief later.