BharatPe now offers secured loans to merchant partners in India
What's the story
BharatPe, a prominent fintech firm, has announced its entry into the secured loans sector in India on its platform. The company has initiated this new venture by launching two-wheeler loans and Loans Against Mutual Funds (LAMF), specifically for its existing merchant partners. To facilitate these services, BharatPe has formed strategic partnerships with OTO Capital and Volt Money.
Partnership details
Two-wheeler loans: A collaboration with OTO Capital
BharatPe has teamed up with OTO Capital, a digital commerce and lending platform, to offer two-wheeler loans. This collaboration allows BharatPe's merchants to apply for loans of up to ₹2.5 lakh at competitive interest rates for their next two-wheeler purchase. The loan application process is entirely digital, offering flexibility in choosing the repayment period between 12-48 months.
LAMF launch
BharatPe and Volt Money's joint venture
In addition to two-wheeler loans, BharatPe has also launched Loans Against Mutual Funds (LAMF) in partnership with Volt Money. This new service enables merchants to secure loans of up to ₹1 crore against their mutual funds. Both these loan services will be available on the BharatPe platform, with loan disbursement and collections managed by the respective partner at their end.
Expansion strategy
Future plans and CEO's statement
BharatPe aims to expand its secured loan services into a multi-product and multi-lender offering in the future. Nalin Negi, CEO of BharatPe, expressed his confidence that these secured loans will significantly contribute to their overall revenue in the coming months. He emphasized the company's commitment to empowering merchant partners by continually introducing innovative products relevant to them.