PhonePe says it will provide access to credit digitally to its vast merchant base of over 35 million merchants
PhonePe on Friday announced the launch of its merchant lending platform allowing banks and NBFCs (non-banking financial companies) to provide access to credit digitally to its vast merchant base of over 35 million merchants.
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“This reaffirms PhonePe’s commitment to driving financial inclusion for small and medium enterprises (SMEs). SMEs in India have long faced challenges in accessing organised credit, impeding their growth and hindering their potential,” PhonePe said in a statement.
PhonePe has over 50 per cent market share by value in the UPI transactions.
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It added that PhonePe has designed an end-to-end journey on 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 said it has successfully facilitated the disbursal of over 20,000 loans through its trusted NBFC partners since May 2023.
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Hemant Gala, vice-president (financial services) of PhonePe, 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.”
