Poonawalla Fincorp Limited (PFL), a prominent non-banking finance company (NBFC) promoted by the Cyrus Poonawalla Group, has announced the launch of an innovative AI-powered underwriting solution. This groundbreaking technology, developed in collaboration with the Indian Institute of Technology Bombay (IIT Bombay), is set to revolutionize the company's loan assessment and approval processes.

Cutting-Edge Technology Meets Financial Expertise

The new AI-powered underwriting solution integrates artificial intelligence with human intelligence, creating a synergy that promises to streamline and automate the credit evaluation process. By leveraging Large Language Models (LLM) and Machine Learning (ML) platforms, Poonawalla Fincorp aims to accelerate credit decisions while maintaining a risk-first approach.

Boosting Productivity and Efficiency

One of the key highlights of this new technology is its potential to significantly enhance productivity. Poonawalla Fincorp projects a 40% boost in credit managers' productivity for retail lending, a substantial improvement that could have far-reaching implications for the company's operations and customer service.

Industry-Academia Collaboration

The development of this AI-powered solution is a result of a strategic partnership between Poonawalla Fincorp and IIT Bombay. This collaboration underscores the potential of industry-academia synergy in addressing real-world business challenges and driving innovation in the financial sector.

Mr. Arvind Kapil, Managing Director & CEO of Poonawalla Fincorp, expressed enthusiasm about the launch, stating, "At Poonawalla Fincorp we fully respect and understand the transformative impact of AI in reshaping the credit landscape. We are delighted to launch our groundbreaking solution, blending AI innovation and human judgment in credit underwriting. With this initiative, we position ourselves as paradigm pioneers, driving transformation in our industry."

Future Developments

Poonawalla Fincorp is not resting on its laurels. The company has already set its sights on the next phase of development, which aims to evolve the current AI functionality into a more sophisticated self-learning AI model. This future iteration will incorporate deep learning algorithms, enabling autonomous decision-making and continuous system improvement through pattern recognition.

About Poonawalla Fincorp Limited

Poonawalla Fincorp Limited is a non-deposit taking systemically important NBFC, registered with the Reserve Bank of India (RBI). With a history spanning nearly three decades, the company has established a strong presence across 18 states and 2 Union Territories in India. As of December 31, 2023, Poonawalla Fincorp reported an Assets Under Management (AUM) of ₹30,984.00 crore and employs over 2,560 people.

The company offers a wide range of financial services, including:

• Pre-owned car finance
• Personal loans
• Consumer loans
• Loans to professionals
• Business loans
• Loans against property
• Machinery loans

With this latest technological advancement, Poonawalla Fincorp continues to demonstrate its commitment to innovation, efficiency, and customer-centric services in the competitive landscape of India's financial sector.

Poonawalla Fincorp Limited (PFL), a prominent NBFC promoted by the Cyrus Poonawalla Group, has announced a significant expansion of its financial services portfolio. The company has launched its Commercial Vehicle (CV) Secured Loan Business, aiming to tap into the growing demand in India's transportation and logistics sector, particularly in tier 2 and tier 3 markets.

Expansion Strategy

The new offering is designed to support the essential logistics and supply chain sectors by enhancing transportation capabilities for CV operators. PFL's commercial vehicle loans will cover a wide range of vehicles, including:

• Small Commercial Vehicles
• Light Commercial Vehicles
• Intermediate & Heavy Commercial Vehicles

The company plans to offer loans for both new and used vehicles from all major manufacturers, providing flexible, structured payment and repayment options to suit various customer needs.

Technology-Driven Approach

In line with its risk-first approach, PFL has introduced a technology solution aimed at streamlining the loan process. Key features include:

• Reduced documentation requirements
• Faster turnaround time
• Seamless onboarding experience
• Integration with technology partners for robust assessment frameworks

Phased Roll-out

PFL's expansion into the CV loan segment will be implemented in two phases:

1. Initial Phase: Entry into 68 locations across 12 states
2. Expansion Phase: Coverage of 400 locations across 20 states through a hub-and-spoke model

The company plans to offer CV loans through multiple channels, including direct-to-customer, dealers, and channel partners.

Market Opportunity

The launch of this new business line comes at a time when India is experiencing:

• A booming e-commerce sector
• Rapid industrial growth
• Ambitious infrastructure development

These factors have contributed to a rising demand for both new and used commercial vehicles nationwide. PFL expects the used commercial vehicle segment to form a significant part of its CV loan portfolio.

Leadership Perspective

Mr. Arvind Kapil, Managing Director & CEO of Poonawalla Fincorp, commented on the launch: "Commercial transport sector continues to be the backbone of our growing economy. Our new Commercial Vehicle Loan directly facilitates the financial needs of transporters with streamlined processes and hassle-free documentation. It also adds clear strength to the bouquet of our secured businesses."

Company Overview

Poonawalla Fincorp Limited, headquartered in Pune, is a non-deposit taking systemically important non-banking finance company (ND-SI-NBFC) registered with the Reserve Bank of India (RBI). As of December 31, 2024, the company reported:

With this new initiative, Poonawalla Fincorp continues to diversify its portfolio, which already includes pre-owned car finance, personal loans, consumer loans, loans to professionals, business loans, and loans against property and machinery.

The expansion into the commercial vehicle loan segment represents a strategic move for Poonawalla Fincorp, potentially opening up new revenue streams in the growing commercial vehicle sector while addressing the financial needs of India's vital transportation industry.