PhonePe has expanded its loan distribution offerings by launching secured lending products on its platform. This initiative is in partnership with a network of esteemed banks, non-banking financial companies (NBFCs), and fintechs. With a vast user base of over 535 million registered users, PhonePe aims to deliver a seamless user experience in the secured loans category.
Customers can now access a range of secured lending solutions directly within the PhonePe app, covering six major categories: Mutual Fund Loans, Gold Loans, Bike Loans, Car Loans, Home Loans/Loans against Property, and Education Loans. PhonePe has collaborated with top lenders, including Tata Capital, L&T Finance, Hero FinCorp, Muthoot Fincorp, DMI Housing Finance, Home First Finance, rupyy, Volt Money, and Gradright. The platform currently boasts 15 active partners, with plans to increase this number to 25 by the next quarter. Users can initiate the loan application process under the ‘Loan’ section of the PhonePe app, selecting their preferred loan category and lender, all within PhonePe’s familiar app environment, simplifying the process significantly.
Hemant Gala, CEO of PhonePe Lending, expressed excitement about the launch, stating, “We are thrilled to introduce our secured lending platform across all major categories with top banks and NBFCs. This initiative connects lenders with millions of our customers on a single platform, meeting their financial needs. As lenders digitize the secured loan journeys and customers rapidly adapt to these changes, we believe it’s an opportune moment to revolutionize the secured lending product experience.”
Sudipta Roy, MD & CEO at L&T Finance, emphasized the benefits of the partnership, saying, “By harnessing the combined expertise and resources of both companies, we are poised to provide best-in-class solutions tailored to meet the varied needs of customers seeking Housing and Two-wheeler Financing. This collaboration underscores our dedication to empowering individuals and families to realize their homeownership and mobility aspirations.”
Vivek Chopra, COO – Retail Finance at Tata Capital, highlighted the partnership’s impact on credit penetration, stating, “Our partnership with PhonePe aims to broaden the accessibility of our lending services to their user base. This partnership not only reinforces our digital-first approach but also highlights our effort to boost credit penetration across India.”
Bharat Lamba, Co-Founder & Chief Business Officer of Volt Money, added, “We are excited to join forces with PhonePe to redefine the borrowing experience for millions of individuals across India. Through this partnership, we leverage PhonePe’s extensive reach and Volt Money’s unique financial offerings to empower mutual fund investors with convenient access to funds.”
Aman Singh, Co-Founder of Gradright, remarked, “Our collaboration with PhonePe aligns with our mission to democratize access to education finance for students from lower and middle-income backgrounds across Bharat. PhonePe’s extensive reach transforms our service opportunity, enabling us to serve millions of students.”
This strategic partnership and the launch of secured lending products underscore PhonePe’s commitment to enhancing financial accessibility and delivering value through innovation and collaboration.
