PhonePe introduces secured lending products

In a bid to expand its loan distribution offering, PhonePe introduced secured lending products on its platform in collaboration with a network of trusted banks, non-banking financial companies (NBFCs), as well as other fintech companies. The Walmart-owned firm intends to develop a simplified and improved user experience in the secured loans category through this.

In addition, PhonePe’s move allows customers to access lending services across six categories directly within its app, including Mutual Fund Loan, Gold Loan, Bike Loan, Car Loan, Home Loan or Loan against Property, and Education Loan.

Currently, PhonePe has collaborations with a selection of lenders, including Tata Capital, L&T Finance, Hero FinCorp, Muthoot Fincorp, DMI Housing Finance, Home First Finance, rupyy, Volt Money, and Gradright, among others, with the company planning to include more in the upcoming period. At the time of the announcement, the platform hosts 15 active partners, aiming to scale to 25 by Q3 2024.

PhonePe’s customers can leverage the loan facility under the existing Loan section on the company’s app, select the category they need, and choose from a list of lenders. Also, the loan application process is initiated within PhonePe’s app environment, thus removing the need to navigate multiple apps, and working towards simplifying the journey for the user. According to PhonePe’s officials, the move allows the company to connect lenders and customers across India on a single platform to meet their financial needs. Moreover, PhonePe intends to focus on improving the secured lending product experience for customers in the lending ecosystem.

Furthermore, representatives from L&T Finance highlighted that the partnership with PhonePe supports their company’s commitment to enabling individuals and families to achieve their homeownership and mobility objectives. Additionally, L&T Finance underlined that both companies’ allegiance to providing value and fostering long-term relationships.

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