Fintech major BharatPe launches secured loan offerings for its merchants

New Delhi-based fintech major BharatPe has launched secured loan offerings for its merchant partners. The fintech firm has launched two new loan products: two-wheeler loans and Loans Against Mutual Funds (LAMF).

The launch marks BharatPe’s first foray into secured lending, following its success in unsecured loans over the past few years.

Partnering with OTO Capital, Volt Money

To facilitate these new loan offerings, BharatPe has partnered with OTO Capital and Volt Money.

OTO Capital, a digital commerce and lending platform, will enable two-wheeler loans for BharatPe’s merchants. These loans can go up to Rs. 2.5 lakh, with flexible repayment options ranging from 12 to 48 months. The entire process is digital, ensuring a seamless experience for users.

Volt Money will facilitate Loans Against Mutual Funds (LAMF), allowing merchants to borrow up to Rs 1 crore.

The offering aims to provide merchants with easy access to capital, ensuring they can meet their business needs without hassle.

Both OTO Capital and Volt Money will manage the disbursal and collection of these loans, simplifying the process for BharatPe’s merchants.

Expanding financial access for merchants

BharatPe’s CEO, Nalin Negi, emphasized the company’s ongoing commitment to empowering merchants through innovative financial products.

"BharatPe started out in 2018 with the objective of empowering millions of offline merchants with new-age fintech products. 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," Negi said.

He said that the introduction of secured loans would further strengthen the company’s credit portfolio and enhance its engagement with merchants.

Diversifying product offerings

The launch of secured loans is part of BharatPe’s broader strategy to diversify its product offerings and create new revenue streams.

The company plans to roll out additional secured loan products in the coming months, catering to a wider range of merchant needs. 

In 2022, the company entered the gold loans segment for its merchants by partnering with NBFCs, offering loans up to Rs 20 lakh against a gold pledge.

At present, it has a base of over 13 million merchants.

\Sumit Chhazed, CEO of OTO Capital, said, “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.”

Similarly, Bharat Lamba, Co-founder & CBO at Volt Money, said, "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."