L&T Finance forays into co-lending space, ties up with CRED to offer unsecured personal loans

Under the new arrangement, CRED members will be able to avail credit within few minutes. They will also have an option of flexible repayment tenure along with competitive interest rates. (Photo: Pixabay)

L&T Finance, a major Non-Banking Finance Company, on August 20 announced a key partnership with fintech major CRED to offer unsecured personal loans. According to the official statement, CRED members will be able to get credit through the CRED Cash product. L&T Finance will offer this along with its co-lending partner Newtap Finance Private Ltd.

Under the new arrangement, CRED members will be able to avail credit within few minutes. They will also have an option of flexible repayment tenure along with competitive interest rates.

On the company’s foray into the co-lending space, L&T Finance Managing Director and CEO Sudipta Roy said, “We are excited to announce our partnership with CRED. The association marks LTF’s entry into the co-lending space which will leverage the strength of LTF’s extensive experience in the financial services sector, CRED's large affluent customer base and strong reputation for creditworthiness, and NewTap's expertise in digital lending and risk assessment.”

On future of the partnership, Roy further said that, “We believe that this partnership will further enhance our presence in the digital lending space with focus on customer experience and provide CRED’s customers with loans in a couple of minutes with flexible repayment tenures, at competitive interest rates, thereby offering customers a unique and seamless borrowing experience.”

Meanwhile, CRED founder Kunal Shah said, “This partnership is an opportunity to empower our members—those with high credit scores, impeccable repayment histories, and affluence— with credit from one of the nation's most reputable lenders. It isn't just about providing credit; it’s about fostering a cycle of financial virtue, where high-quality institutions meet high-quality customers, driving progress for both the community and the industry."

L&T Finance’s book size grew a notable 11 percent year-on-year to Rs 6,667 Crore during Q1FY25, while disbursements for the quarter reached Rs 1,178 Crore. LTF's Personal Loans business is expected to continue growing, fueled by various factors such as strategic partnerships and collaborations, expansion into new geographies, and customer retention, among others.