Piramal Retail Finance to venture into consumer financing through fintech tie-ups

(Image: Moneycontrol)

Piramal Group will soon offer more retail lending products, as it rebalances away from wholesale loans and plans to foray into consumer financing, reported Bloomberg Quint.

Via tie-ups with fintech firms, Piramal Retail Finance will enter segments such as used car loans, digital personal finance, and secured lending to small businesses, Jairam Sridharan, CEO of the unit, said on April 15.

For used car financing, Piramal Retail Finance has tied up with Cars24 — a digital platform for purchase of second-hand automobile. For consumer durable financing, it has tied up with ZestMoney and for affordable housing it has partnered with India Mortgage Guarantee Corporation.

Through these, Piramal Retail Finance is aiming for Rs 3,000 crore in new loan originations within one year.

Piramal Retail Finance’s new monthly retail loan disbursements have risen from Rs 17 crore in October to Rs 87 crore in December. The yield on the new loans are about 200 basis points higher, the company has said.

Meanwhile, Piramal Retail Finance’s retail loan products have also expanded to seven, with another five retail loan products to be added this year.

Sridharan said, “We will be looking to start two-wheeler financing and education loans in the next 12 months. We are working on a loans-against-shares product as well. We will also grow unsecured and multi-collateral lending products for small businesses.”