Poonawalla Fincorp share price jumped 2.3%, hitting a six-month high after announcing its entry into the fast-growing consumer durables loan segment.
Poonawalla Fincorp’s share price hit a six-month high as it surged over 2.3% as of 12:48 PM on April 22. The stock also reclaimed its important psychological level of ₹400. The surge in share price is fuelled by the announcement of the company's foray into the consumer durable loans market.
Poonawalla Fincorp (PFL), a Cyrus Poonawalla Group promoted NBFC focused on Consumer & MSME Lending, announced its official entry into the consumer durables loans business. The company has also introduced 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.
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.
Consumer durable loans allow customers to purchase items like electronics, smartphones, and appliances through flexible EMIs. With financing penetration in India’s consumer durables market currently at around 30%, particularly growing in Tier 2 and Tier 3 cities, this sector is rapidly evolving. By launching its own digital EMI card and offering quick 5-minute loan approvals, Poonawalla Fincorp aims to tap into this demand efficiently. Additionally, the company is partnering with leading OEMs that hold significant market share across various regions.
PFL’s initial priority is to institutionalise 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.
More importantly, the company is leveraging a digital-first approach. This not only ensures instant onboarding of customers at point-of-sale but also opens doors for cross-selling other financial products such as personal loans and insurance—thereby enhancing customer lifetime value.
According to the company’s CEO, Mr Arvind Kapil, this is not just a product launch but a long-term strategic lever to deepen and accelerate the company’s retail footprint. With an initial rollout across 70 locations and collaborations with 5,000 dealers and OEMs, the company aims to quickly build scale.
In tandem, Poonawalla Fincorp is upgrading its back-end payment systems to enable real-time disbursements for dealers—replacing the older batch processing model with faster settlements. This operational agility is expected to create a competitive edge.
The consumer durable loans initiative is the sixth business line introduced by Poonawalla Fincorp as part of its transformation journey. With the addition of Consumer Durable Loan business, the company has further strengthened its secured lending portfolio.
Disclaimer: The article is for informational purposes only and not investment advice.
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