Poonawalla Fincorp Ltd, a leading non-banking financial company (NBFC) under the Cyrus Poonawalla Group, has announced a major leap into the retail lending space by launching its consumer durables loan business. This move is paired with the unveiling of a digital EMI card, targeted at offering instant point-of-sale (POS) financing with pre-approved credit limits.

This marks a significant strategic initiative by the company as it intensifies focus on expanding its customer base, especially in Tier 2 and Tier 3 cities, through tech-driven lending models.

A Game-Changer: Digital EMI Card with Instant Loan Sanction

At the core of this new offering is a digital EMI card that facilitates loan approvals within five minutes. This product is designed to enable both salaried and self-employed customers to purchase consumer durable items instantly at various dealer outlets.

With competitive interest rates, flexible repayment options, and a wide retail partner network, the EMI card meets the growing demand for real-time lending solutions, especially among customers looking for instant affordability options.

Arvind Kapil, Managing Director and CEO of Poonawalla Fincorp, highlighted the strategic relevance of this new business line:

“This is not just a product launch — it’s a strategic lever to scale our retail business faster, deeper, and more profitably. It unlocks access to millions of new customers and enables us to serve them across their financial lifecycle.”

Customer Acquisition and Dealer Partnerships

To maximise outreach and customer onboarding, Poonawalla Fincorp has laid out a detailed plan:

• Targeting 70 locations across India, including metro and non-metro cities.

• Collaborating with over 5,000 dealers, including regional retailers and small businesses.

• Building an ecosystem that integrates retail finance seamlessly with digital disbursement platforms.

This rapid expansion will be backed by a 90-day institutionalisation plan to streamline customer acquisition and onboarding.

Tech-First Strategy and Real-Time Disbursements

A key enabler of this initiative is Poonawalla Fincorp’s tech-first approach. Unlike traditional NBFC processes that involve batch-based settlements, the new platform will support real-time disbursements to dealer partners, ensuring faster loan processing, faster product delivery, and enhanced dealer satisfaction.

This not only improves the customer experience but also supports operational efficiency, critical to scaling a high-volume business like consumer durable financing.

Expanding the Secured Lending Portfolio

The consumer durables loan initiative is one of six new business lines launched by Poonawalla Fincorp to strengthen its secured lending portfolio. With India’s retail credit market witnessing accelerated growth in smaller cities, the company is positioning itself strategically to serve a wider demographic with tech-enabled financial products.

This aligns with broader trends in India’s lending ecosystem where NBFCs are increasingly shifting toward digital lending and targeted financial solutions for underserved markets.

Cross-Sell Opportunities and Customer Lifecycle

The newly introduced EMI card also paves the way for cross-sell opportunities. Customers who opt for durable loans can potentially be introduced to other financial services, such as:

• Personal loans

• Insurance offerings

• Vehicle finance

• Education loans

This creates a 360-degree customer engagement model, where Poonawalla Fincorp can engage customers across various stages of their financial journey, thereby improving lifetime value and portfolio profitability.

Focusing on Tier 2 and Tier 3 Growth Markets

India’s Tier 2 and Tier 3 cities are witnessing an uptick in consumer spending, particularly in consumer electronics, home appliances, and lifestyle goods. The demand for affordable finance in these regions is high, making them ideal markets for digital EMI-based lending.

Poonawalla Fincorp’s new venture directly taps into this consumer sentiment, enabling it to:

• Provide affordable credit access

• Leverage dealer networks in remote markets

• Build brand visibility and customer loyalty

Stock Market Impact and Future Outlook

Following the announcement, Poonawalla Fincorp shares were trading at ₹404, up by 1.85% around 11:15 AM, indicating positive investor sentiment.

As the company continues to invest in technology, partnerships, and customer-centric offerings, analysts believe that its retail strategy is well-positioned for long-term growth, particularly in a competitive NBFC environment.

Conclusion

The launch of the consumer durables loan business by Poonawalla Fincorp is more than just a product launch—it is a strategic pivot towards digitally enabled retail lending. The combination of instant EMI cards, real-time dealer payments, and a broad partner network ensures scalability and customer stickiness.

This move signals Poonawalla Fincorp’s intent to become a major player in consumer finance, leveraging technology, market segmentation, and cross-product strategies to drive revenue and customer growth in FY25 and beyond.

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