Bengaluru-based fintech firm PhonePe has partnered with several non-banking finance companies to offer secured loans. The Walmart-owned company will initially offer its customers six credit products – loans against mutual funds, gold loans, two-wheeler and four-wheeler loans, home loans, loans against property and education loans.
PhonePe has partnered with NBFCs such as Tata Capital, L&T Finance, Hero Fincorp, Muthoot Fincorp, DMI Housing Finance, Home First Finance, Rupee and Volt Money. PhonePe will partner with more NBFCs in the coming weeks.
PhonePe has launched this service at a time when the Reserve Bank of India has asked loan lending platforms to slow down the pace of disbursing unsecured loans to customers.
PhonePe has around 535 million users
PhonePe has around 535 million users and NBFCs are hoping to leverage this user base with their credit offerings.
Jio Financial Services will also soon offer secured loans
Reliance Industries’ parent company Jio Financial Services unveiled the beta version of its JioFinance app yesterday. Users will get services like digital banking, UPI transactions, bill payments and insurance advisory on the app. There will also be a facility to take loan against mutual funds.
In the coming time, the company will expand its loan services and extend it to home loans. The company is calling it a state-of-the-art platform that will revolutionize daily finance and digital banking. The company will improve the app based on user input.
