PhonePe now offers collateral-free loans to merchants in India
What's the story
SMFG India Credit (SMICC), a non-banking financial company (NBFC), has joined forces with PhonePe, a fintech platform in India, to provide collateral-free credit. The partnership will allow SMICC to offer Merchant Cash Advance (MCA) loans to registered merchants on the PhonePe platform. Many of these merchants are located in Tier-2 and Tier-3 cities across India.
Statement
Financial solutions now more accessible
Ajay Pareek, the Chief Business Officer at SMFG India Credit, expressed his excitement over the partnership with PhonePe. He said it would make their financial solutions more accessible to India's self-employed and small business community. Pareek added that the collaboration would reach millions of merchants on the PhonePe platform, providing them easy access to merchant loans.
Accessibility
What did PhonePe say?
Hemant Gala, a representative of PhonePe, also spoke about the partnership. He said they are excited to partner with SMICC to provide credit solutions across their 45+ million merchant network. Gala emphasized that this collaboration combines SMICC's lending expertise with PhonePe's reach to democratize credit access for India's underbanked micro-merchants.