PhonePe launches platform for merchant lending
Hyderabad/UNI: PhonePe, India’s largest payments app, enabling digital inclusion for consumers and merchants alike, on Monday announced the launch of its Merchant lending platform allowing Banks and NBFC's (Non-Banking Financial Companies) to provide access to credit in a completely digital and seamless manner to its vast merchant base of over 35 million merchants.
SMEs in India have long faced challenges in accessing organized credit, impeding their growth and hindering their potential, the company said in a release.
Understanding this unmet need, PhonePe has designed a seamless end-to-end journey on the PhonePe for Business app, ensuring that loans are approved by lending partners in a matter of minutes.
PhonePe leverages its strong distribution network and superior tech capabilities, while the Lending partners bring in their expertise in underwriting, disbursals and loan collection.
PhonePe has successfully facilitated the disbursal of over 20,000 loans through its trusted NBFC partners since May 2023.
The phenomenal early traction the company has seen highlights the tremendous demand for credit among SMEs and the effectiveness of PhonePe’s Marketplace model in fulfilling this need.
One of the distinguishing factors that sets PhonePe apart is its strong engagement with merchants in the payments business.
The company's in-depth understanding of a merchant’s transactional behavior is a strong dimension that validates the health of the merchant’s business. PhonePe is actively developing its own credit score using cutting-edge data science-driven models, which further augments the partner’s lending process and empower SMEs to access credit with greater ease.
Speaking on the launch, Hemant Gala, Vice President of Financial Services said, "We are excited to launch Merchant Lending on our platform using the Marketplace Model, providing SMEs & MSMEs with access to organized credit and enabling their growth.
"By serving as a catalyst for the financial empowerment of MSME & SMEs, PhonePe is proud to contribute to the overall development of the economy and drive sustainable progress."
IBNS
Senior Staff Reporter at Northeast Herald, covering news from Tripura and Northeast India.
Related Articles
CRR cut, AI ethics push, and SORR benchmark: Experts hail RBI’s pragmatic policy moves
Mumbai: The Reserve Bank of India (RBI) has kept the repo rate unchanged at 6.5% while the cash reserve ratio (CRR) has been slashed by 50 basis points to 4 percent, media reports said.
JP Morgan gives 'overweight' rating to Adani Group bonds
Mumbai: US investment bank JP Morgan has assigned an 'overweight' rating to four bonds issued by the Adani Group, citing the group's capacity to scale and grow through internal cash flows, which reduces the likelihood of credit stress.
LG Electronics files DRPH with SEBI; IPO size expected to be over RS 15,000 cr
Mumbai: South Korean electronics giant LG Electronics has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on Friday for the proposed public listing of its Indian business, according to a notification on the Bombay Stock Exchange (BSE).
De-dollarisation not on India's agenda; derisking domestic trade is: RBI Governor Shaktikanta Das
Mumbai: India has not initiated any steps towards de-dollarisation and is solely focused on mitigating risks to domestic trade from geopolitical uncertainties, Reserve Bank of India (RBI) Governor Shaktikanta Das clarified on Friday, media reports said.
Latest News
With heavy hearts, devotees bid farewell to Goddess Durga across Northeast
13, including 10 children, die in two separate Durga idol immersion tragedies in Madhya Pradesh
Prez Droupadi Murmu, PM Modi pay tributes to Mahatma Gandhi and Lal Bahadur Shastri on birth anniversaries
Centre orders probe into Tamil Nadu-based cargo firm Wintrack Inc’s charges against Chennai Customs
