PhonePe Launches Secured Lending Products

PhonePe, a digital payments company owned by Walmart, announced the launch of secured lending products on its platform through partnerships with banks, non-banking financial companies (NBFCs), and other fintech firms. The new service aims to enhance user experience in the secured loans category and is accessible to PhonePe’s over 535 million registered users.

The secured lending solutions cover six major categories: mutual funds, gold, bike, car, home, loans against property, and education loans. Hemant Gala, CEO of PhonePe Lending, emphasised the potential to connect lenders with millions of customers nationwide, meeting their financial needs seamlessly.

Partnering with Tata Capital, L&T Finance, Hero FinCorp, Muthoot Fincorp, DMI Housing Finance, Home First Finance, rupyy, Volt Money, and Gradright, PhonePe plans to expand its network to 25 active partners by the next quarter. The loan application process is integrated within the PhonePe app, allowing users to select their desired loan category and lender without navigating multiple applications.

Sudipta Roy, Managing Director and CEO of L&T Finance, stated that the collaboration aims to empower individuals and families in achieving homeownership and mobility goals. Vivek Chopra, COO of Retail Finance at Tata Capital, highlighted the partnership’s role in boosting credit penetration in India. Bharat Lamba, Co-founder and Chief Business Officer of Volt Money, noted the benefit of leveraging PhonePe’s extensive reach. Aman Singh, Co-founder of Gradright, remarked on the significant increase in their service reach, from thousands to millions of students, thanks to PhonePe.

This initiative by PhonePe marks a significant step towards simplifying the secured lending process and enhancing financial inclusion across India.