BharatPe announced on March 14 that it would provide gold lending services to its merchant partners. The company’s new product marks its foray into the secured lending category. BharatPe has partnered with RBI-approved non-bank financial companies to start offering gold loans of up to Rs 20 lakh.
The company is offering the new service to partner merchants in New Delhi, Bangalore and Hyderabad. BharatPe aims to expand its services to 20 cities and shell out Rs 500 crore by the end of 2022.
The loan will be granted at an interest rate of 0.39% per month or 4.68% per annum. The loan application process is completely digital and the company claims to disburse the loan within 30 minutes of the application being assessed.
Partner merchants can view available loans through the BharatPe app and apply for the loan through the app itself. Loans are available in six month, nine month and 12 month terms with EMI options for repayments to be launched soon.
“With the gold loan, we ventured into the category of high-priced secured loans. Lending gold will allow us to further empower our merchant partners and positively impact millions of small businesses. We had been piloting the product for 2 months and the response was very encouraging. We facilitated disbursements of Rs 10 crore during the pilot phase,” said Suhail Sameer, CEO of BharatPe.
The company has already disbursed unsecured loans of up to Rs 7 lakh to various merchants and offline store owners. The loans are unsecured and are available in terms of three, six and 12 months, with the application also being fully digital.
“The credit gap is one of the biggest barriers to offline retailers’ growth journey. Over the past two years, we have aggressively focused on solving this problem by facilitating unsecured lending by partnership with NBFCs. We were able to facilitate remittances of over Rs 3,000 crore to 3 lake merchant partners,” Sameer added in the company’s statement.
(Edited by : Shoma Bhattacharjee)
First post: STI