BharatPe, homegrown fintech Startup today forays into facilitation of secured loans for merchant partners on its platform.
The company has launched facilitation of two-wheeler loans and Loans Against Mutual Funds (LAMF) for its existing merchant partners in the first phase. BharatPe has partnered with OTO Capital, an emerging digital commerce and lending platform, for enabling two-wheeler loans.
Additionally, the company has partnered with Volt Money to facilitate Loans Against Mutual Funds to its merchant partners. The company plans to expand this to a multi-product and multi-lender offering in the next phase.
BharatPe’s merchants can now avail two-wheeler loans of up to Rs. 2.5 lacs, at competitive interest rates, for their next two-wheeler purchase from OTO Capital. The loan application process is 100% digital and merchants have the option to choose the repayment period between 12- 48 months. With the launch of Loans Against Mutual Funds (LAMF) in partnership with Volt Money, BharatPe’s merchants can also avail loan of up to Rs. 1 crore against Mutual Funds.
Speaking on the launch, Nalin Negi, CEO, BharatPe, said, “BharatPe started out in 2018 with the objective of empowering millions of offline merchants with new-age fintech products that deliver value to their businesses. In 2019, we ventured into the facilitation of unsecured loans with the motto of addressing the US$ 0.5 trillion MSME credit gap that has acted as a blocker to the growth of this industry. Over the course of the last few years, we have made great progress and have facilitated unsecured loans of over Rs. 15,000 crores to our merchant partners. I am excited about the launch of the secured loans offerings as this further bolsters the credit portfolio enabled by BharatPe and underscores our commitment to enable credit access to our merchants. I would like to thank OTO Capital and Volt Money for joining hands with us to enable credit for our 1.3 crore+ merchant partners.”
Speaking on the launch of two-wheeler loans, Sumit Chhazed, C.E.O, OTO Capital, said, “We believe in the power of mobility to transform lives. Our mission is to make two-wheeler ownership accessible and affordable for every aspiring entrepreneur in India. Together, we are committed to providing accessible mobility solutions that will help businesses thrive. Our partnership with BharatPe is rooted in our shared commitment to empowering India's entrepreneurial spirit. Together, we're building a future where every business has the opportunity to thrive.”
Speaking about the launch of loans against mutual funds, Bharat Lamba, Co-founder & CBO at Volt Money, “We cannot be more excited about this strategic partnership with BharatPe. As a company, we closely identify with BharatPe’s mission of financial inclusion for Indian merchants. By providing instant loans against Mutual funds, we are uniquely positioned to meet the short-term liquidity and working capital needs of MSMEs, thus enabling and empowering them financially. This collaboration represents a significant step forward in our commitment to providing low-cost 100% digital financing solutions to Indian businesses by unfurling them to BharatPe’s diverse large base of merchants.”
Both the two-wheeler loans and Loans Against Mutual Funds will be enabled on BharatPe platform. The loan disbursal and collections will be taken care of by the partner at their end. BharatPe is set to expand its offerings over the next three months, introducing a diverse range of products and lenders to meet the needs of merchants.
