Poonawalla Fincorp on April 15 announced its foray into the gold loan business in a move that will see the expansion of its lending portfolio.
The company plans to open 400 new branches in a phased manner in the next four quarters to cement its presence across Tier 2 and Tier 3 cities. The firm has also onboarded several industry professionals to provide "tailored solutions" and enhance customer experience, the stock filing said.
The shares of the company rose 1.56 percent to Rs 372 in early trading on NSE at 09:57 am.
The Cyrus Poonawalla Group-promoted NBFC, in a stock exchange filing, highlighted that the new offering will provide consumers a “secure and transparent” financing solution for individuals and businesses to cater to various needs.
The firm will provide approvals in “less than 30 minutes” with “minimal documents” with multiple repayment options to unlock the value of the gold holdings, the company statement said.
“Our gold loan offering represents a natural progression in our secured lending portfolio, combining traditional value with modern convenience. We have designed this product with the customer journey at its core, respecting both the emotional and financial value of gold. At Poonawalla Fincorp, customer asset safety and transparency remain paramount, while delivering reliable and premium services,” said Arvind Kapil, MD & CEO, Poonawalla Fincorp.
Explaining its rationale behind entering the gold lending segment, Poonawalla group firm said the gold loan market in the country represents a "substantial opportunity", with projections indicating "robust growth" over the next several years across both urban and rural markets.
"Poonawalla Fincorp is strategically positioned to capture this growing opportunity through its customer-centric approach and commitment to delivering premium services tailored to borrowers' needs."
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