BharatPe enters the gold lending segment; disbursements of Rs 500 cr this year

BharatPe, a fintech player in crisis, has entered the gold lending segment for its merchant partners, marking its entry into the secured credit category for a company that offers a multitude of unsecured credit products at low prices. .

The Gurugram-based company has been mired in numerous scandals, which recently led to one of its founders being kicked out of the business. It is also the subject of various investigations by law enforcement agencies. The company is also a co-promoter of Unity Small Finance Bank.

For the launch of gold loans, BharatPe has teamed up with a few NBFCs and will offer loans of up to Rs 20 lakh against a pledge of gold.

The service is already available for its merchant customers in Delhi-NCR, Bengaluru and Hyderabad, and it will expand it to 20 cities by the end of this year when it hopes to shell out Rs 500 crore, BharatPe said in a statement on Monday. .

Its interest rate at the lowest tranche is 0.39% per month, or 4.7% per year. Loan application and disbursement is done digitally in 30 minutes.

It also offers home and branch collection facilities and customers can take out 6-, 9- and 12-month loans, said Suhail Sameer, managing director of the company, adding that it conducted a two-month pilot project. and facilitated Rs 10 crore disbursements. .

Since its launch, BharatPe has provided unsecured loans of up to Rs 7 lakh to offline merchants and kirana store owners. So far, it has disbursed over Rs 3,000 crore to 3 lakh merchant partners and these loans have tenors of 3, 6 and 12 months.

(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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