Poonawalla Fincorp Limited (PFL) has recently unveiled its Consumer Durables Loans business with a digital EMI card with pre-approved limits, enabling customers to purchase consumer durable products more conveniently.
This launch marks the company’s strategic entry into a fast-growing, high-velocity segment of retail lending, strengthening its ability to build a deeper, more scalable retail franchise while enhancing profitability and lifetime customer value.
Consumer durable loans present PFL with a strategic opportunity to drive faster customer franchise growth through instant, point-of-sale loans and digital onboarding, enabling real-time customer acquisition and building scale efficiently with a tech-first approach.
Additionally, this offering creates a strong cross-sell flywheel, as consumer durable loan customers become potential leads for personal loans, insurance, and other financial products, creating a natural cross-sell funnel, high engagement and strong visibility across cities and catchments.
Commenting on the launch, Arvind Kapil, Managing Director and CEO, Poonawalla Fincorp, said, “This is not just a product launch – it’s a strategic lever to scale our retail business faster, deeper, and more profitably. It unlocks access to millions of new customers and enables us to serve them across their financial lifecycle.”
The new product enables faster loan sanctions within 5 minutes, ensuring a seamless experience for both salaried and self-employed individuals at dealer locations. It provides access to flexible EMI structures, competitive interest rates, and a wide retail partner network.
This offering not only simplifies access to financing but also aligns with the growing demand for consumer durable loans—a high-growth, high-frequency segment with significant potential for formal credit penetration.
India’s consumer durables market is booming, with financing penetration increasing significantly in Tier 2 and Tier 3 cities. According to PFL, the current finance penetration in consumer durables stands at 30 percent and is growing rapidly in these regions.
As millions of first-time borrowers seek financing for smartphones, electronics, and appliances through EMIs, Poonawalla Fincorp sees this as a gateway to rapid customer onboarding and long-term relationships. The company is entering the market at the right time with the right digital stack and ecosystem partnerships. It aims to become a trusted household brand by addressing consumer needs while adapting to local market dynamics.
PFL’s initial priority is to institutionalize its acquisition processes end-to-end within the first 90 days and gradually scale the business across geographies, in line with its risk-first approach.
In phase one, PFL plans to expand into 70 locations across key metros, as well as Tier 2 and Tier 3 cities, collaborating with 5,000 dealers, including regional retailers and small businesses with strong local reach. Additionally, the company is partnering with leading OEMs that hold significant market share across various regions.
In addition to launching its consumer durable loan business, PFL is enhancing payment systems by enabling real-time disbursements for dealers, replacing the traditional batch processing system with a faster settlement process.
With this business launch, PFL has now launched 6 new businesses in line with its commitment. With the addition of Consumer Durable Loan business, the company has further strengthened its secured lending portfolio. It continues to focus on simplifying lending, creating customer delight, and enhancing experiences, which remain its top priorities.
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