Poonawalla Fincorp Introduces Consumer Durables Loans to Strengthen Retail Lending

Poonawalla Fincorp Limited has formally stepped into the consumer durables loans segment, marking a significant expansion of its retail lending operations. The announcement, made on April 22, 2025, signals a focused attempt by the company to increase its footprint in a growing area of consumer credit, especially across Tier 2 and Tier 3 regions. As part of this initiative, the non-banking financial company (NBFC), backed by the Cyrus Poonawalla Group, also unveiled a digital EMI card aimed at streamlining the purchasing process for durable goods.

Focusing on Digital Simplicity for Customers

A core feature of the launch is the introduction of a digital EMI card with pre-approved limits. This solution enables customers to buy a wide range of consumer durable products easily at partnered dealer locations. The company stated in a stock exchange filing that this move supports convenience, speed, and a smoother borrowing experience.

The card acts as a direct tool for customers to access short-term financing in real time. Whether it’s a refrigerator, washing machine, television, or other household necessity, the EMI card ensures that buyers can secure funding instantly, without the need for lengthy approval processes.

Retail Lending Strategy with a Tech-Driven Model

According to Poonawalla Fincorp’s CEO and Managing Director, Arvind Kapil, the introduction of this offering is a calculated move to accelerate customer acquisition and create room for broader financial services. He noted, “This is not just a product launch — it's a strategic lever to scale our retail business faster, deeper, and more profitably.” The broader goal is to make retail credit more accessible and appealing across demographic segments.

The company's tech-first approach supports quick point-of-sale financing, minimal manual intervention, and a fully digital onboarding experience. This efficiency is expected to support scalability and operational consistency.

Loan Sanctions Within Minutes

One of the more customer-focused highlights of the offering is the ability to get loan sanctions within five minutes. This quick turnaround time is designed to cater to the growing expectations of buyers who are used to digital speed in most aspects of their lives. The loans are accessible to both salaried and self-employed individuals, providing flexibility and broader reach.

Customers can also expect competitive interest rates and multiple repayment options. With a flexible EMI structure and extended tenure availability, the loan product becomes suitable for diverse income groups.

Growing Presence in Underserved Markets

Initially, Poonawalla Fincorp will roll out the service across 70 locations, targeting both large metros and smaller towns. Aiming to work closely with 5,000 dealers, the company has chosen to prioritize regional and local retail networks in its expansion phase. This strategy aligns with the rising demand for durable loans in semi-urban and rural areas where access to organized credit remains limited.

By facilitating dealer tie-ups and promoting digital loan options, the company is actively addressing the financing gap often faced by consumers in these regions.

New Payment Infrastructure for Dealers

To support its dealer network, Poonawalla Fincorp is enhancing its disbursement systems by replacing batch-based processing with real-time settlements. This shift is expected to improve dealer cash flows and reduce transaction delays, ultimately benefiting both businesses and end consumers.

With an optimized and faster settlement cycle, dealers can rotate working capital more efficiently and meet customer demand with confidence. This new system supports a faster ecosystem for both disbursements and customer transactions.

Multi-Product Opportunity and Cross-Sell Potential

Apart from growing its durable loan segment, Poonawalla Fincorp also aims to use this entry point as a channel to introduce more financial products. Consumers who use the EMI card or avail durable loans can also be offered personal loans, insurance, and savings-related services. This cross-sell strategy supports long-term customer engagement and strengthens the overall retail business proposition.

By aligning product offerings with evolving consumer needs, the company is working to create a robust ecosystem that supports users throughout their financial journeys.

Structured Expansion with Defined Goals

Poonawalla Fincorp plans to institutionalise its customer acquisition approach within the first 90 days. This includes standardized onboarding, backend automation, and tighter performance monitoring across locations. The scalable design is aimed at reducing operational friction while maintaining customer satisfaction.

Further down the roadmap, the NBFC will assess performance data and consumer behavior to adapt offerings and introduce new services under its expanding secured lending portfolio.

Performance Update and Market Response

On the day of the announcement, shares of Poonawalla Fincorp were trading at ₹404 per share, marking a 1.85% rise around 11:15 AM. Market interest suggests investor confidence in the company’s latest move and its long-term strategy in retail lending.

Given the overall rise in demand for accessible credit solutions and the ongoing shift towards digital consumption, the company’s new offering fits into a wider narrative of modernizing retail finance.

Conclusion

The launch of consumer durables loans by Poonawalla Fincorp reflects the company’s intent to scale its retail presence in a structured and digital-first manner. With a well-rounded product offering, tech-enabled processes, and a broad dealer network, the company appears ready to tap into a growing segment of aspirational buyers across India. Backed by the leadership of Arvind Kapil and the support of the Cyrus Poonawalla Group, Poonawalla Fincorp is building momentum with a customer-focused approach that balances speed, simplicity, and smart expansion.