PhonePe, one of India's largest fintech platforms, on Friday (June 23), said it has launched its merchant lending platform, allowing banks and NBFCs to provide access to credit in a completely digital and seamless manner to its vast base of over 35 million merchants.

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SMEs (small and medium enterprises) in India have long faced challenges in accessing organised credit, impeding their growth, the company said.

Understanding this unmet need, PhonePe has designed a seamless end-to-end journey on the PhonePe for Business app, ensuring that loans are approved by lending partners in a matter of minutes.

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PhonePe leverages its strong distribution network and superior tech capabilities, while the lending partners bring in their expertise in underwriting, disbursals, and loan collection. The company has successfully facilitated the disbursal of over 20,000 loans through its trusted NBFC partners since May 2023.

Hemant Gala, Vice President of Financial Services, said, "Promoting financial inclusion is at the core of PhonePe’s mission. We are excited to launch merchant lending on our platform using the marketplace model, providing SMEs & MSMEs with access to organised credit and enabling their growth."

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(Edited by : Shoma Bhattacharjee)