Poonawalla Fincorp (PFL), a Cyrus Poonawalla Group promoted NBFC, has made a strategic move into the retail lending segment by launching its consumer durables loans business and introducing a digital EMI card. This expansion marks a significant step for the company in accelerating customer acquisition and enhancing profitability in the fast-growing consumer finance market.

Key Highlights of the Launch

• Instant Loans: PFL offers instant, point-of-sale loans with digital onboarding, enabling real-time customer acquisition.
• Digital EMI Card: The company has introduced a digital EMI card with pre-approved limits for convenient purchases of consumer durable products.
• Rapid Approval: Loan sanctions are processed within 5 minutes, catering to both salaried and self-employed individuals at dealer locations.
• Flexible Options: Customers can access flexible EMI structures and competitive interest rates.

Strategic Expansion Plans

Poonawalla Fincorp has outlined an ambitious growth strategy for its new consumer durables loans business:

• Geographic Reach: The company plans to expand into 70 locations across key metros, Tier 2, and Tier 3 cities.
• Dealer Network: PFL aims to collaborate with 5,000 dealers, including regional retailers and small businesses with strong local presence.
• OEM Partnerships: The company is partnering with leading Original Equipment Manufacturers (OEMs) that hold significant market share across various regions.

Market Opportunity and Strategy

Mr. Arvind Kapil, Managing Director & CEO of Poonawalla Fincorp, emphasized the strategic importance of this launch, stating, "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."

The company sees significant potential in the consumer durables market:

• Current finance penetration in consumer durables stands at 30%, with rapid growth expected, especially in Tier 2 and Tier 3 cities.
• The new offering is positioned as a gateway to rapid customer onboarding and long-term relationships.
• PFL aims to become a trusted household brand by addressing consumer needs while adapting to local market dynamics.

Enhanced Payment Systems

In addition to the new loan products, Poonawalla Fincorp is improving its payment systems:

• Real-time Disbursements: The company is enabling real-time disbursements for dealers, replacing the traditional batch processing system.
• Faster Settlements: This change aims to provide a faster settlement process, benefiting both dealers and customers.

Strengthening the Portfolio

With the launch of the consumer durables loan business, Poonawalla Fincorp has now introduced six new businesses in line with its commitment to growth and diversification. This addition further strengthens the company's secured lending portfolio, aligning with its focus on simplifying lending, creating customer delight, and enhancing experiences.

As Poonawalla Fincorp continues to expand its offerings and reach, the company is positioning itself as a significant player in the consumer finance market, leveraging technology and strategic partnerships to drive growth and customer satisfaction.

Poonawalla Fincorp Limited (PFL), a leading non-banking finance company (NBFC) promoted by the Cyrus Poonawalla Group, has announced its strategic entry into the consumer durables loans market. This move is set to accelerate customer acquisition and unlock high-yield growth opportunities for the company.

Strategic Expansion

The company has launched its Consumer Durables Loans business, introducing a digital EMI card with pre-approved limits. This new offering is designed to provide customers with a convenient way to purchase consumer durable products, marking PFL's entry into a fast-growing, high-velocity segment of retail lending.

Key Features of the New Offering

• Faster loan sanctions within 5 minutes
• Seamless experience for both salaried and self-employed individuals at dealer locations
• Flexible EMI structures and competitive interest rates
• Wide retail partner network

Market Opportunity

According to PFL, the current finance penetration in consumer durables stands at 30.00 percent and is growing rapidly, especially in Tier 2 and Tier 3 cities. The company sees this as an opportune moment to enter the market, given the increasing demand for financing options for smartphones, electronics, and appliances through EMIs.

Expansion Plans

In its initial phase, PFL plans to:

• Expand into 70 locations across key metros, Tier 2, and Tier 3 cities
• Collaborate with 5,000 dealers, including regional retailers and small businesses
• Partner with leading OEMs that hold significant market share across various regions

Strategic Benefits

1. Customer Acquisition: The new offering enables real-time customer acquisition through instant, point-of-sale loans and digital onboarding.
2. Cross-Selling Opportunities: Consumer durable loan customers become potential leads for other financial products, creating a natural cross-sell funnel.
3. Enhanced Profitability: The high-growth, high-frequency nature of this segment is expected to contribute to the company's profitability.

Management's Perspective

Mr. Arvind Kapil, Managing Director & CEO of Poonawalla Fincorp, commented on the launch, stating, "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."

Additional Initiatives

In addition to the consumer durables loans, PFL is enhancing its payment systems by enabling real-time disbursements for dealers, replacing the traditional batch processing system with a faster settlement process.

Conclusion

This strategic move into the consumer durables loans market represents Poonawalla Fincorp's sixth new business launch, further strengthening its secured lending portfolio. The company continues to focus on simplifying lending, creating customer delight, and enhancing experiences as its top priorities.

As of March 31, 2025, Poonawalla Fincorp reported an Assets Under Management (AUM) of approximately ₹35,550.00 crore, with operations spanning 18 states and 2 Union Territories. The company's diverse financial services offerings now include pre-owned car finance, personal loans, loans for professionals, business loans, loans against property, machinery loans, education loans, commercial vehicle loans, shopkeeper loans, gold loans, and the newly added consumer durables loans.