Fintech firm partners with gold financier to offer secured loans
The fintech firm has partnered with Muthoot FinCorp to enter the secured loans market with a gold loan product. As part of this partnership, Muthoot FinCorp has invested Rs 15 crore in BankBazaar’s ongoing Series D2 round as an equity investor to further strengthen the digital platform.
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The partnership will enable BankBazaar to handle digital data management, digital marketing, product education, digital customer experience, credit score improvement, and consumer education, while Muthoot FinCorp will manage KYC compliance, verification, valuation, storage, loan disbursal, and all other guidelines for a seamless phygital lending experience. Why Gold Loans?
Gold loans serve as a crucial financial tool for small business owners in India, helping integrate borrowers into the formal lending system. With gold’s deep cultural significance in India, these loans are essential for individuals who require access to secure, high-valuation financing at fair rates. Key Benefits
• Increased access to credit for individuals who have been impacted by temporary financial setbacks. • Seamless digital experience for customers, ensuring more inclusive credit access. • Fair valuations and competitive rates for borrowers, protecting them from unregulated lending practices. The partnership is expected to be a major milestone in BankBazaar’s journey to deliver seamless credit solutions, empowering individuals to achieve their goals and aspirations.
Adhil Shetty, CEO of BankBazaar.com
“Gold loans, being counter-cyclical to unsecured credit, will diversify our portfolio and strengthen our offerings. BankBazaar’s consumers will gain seamless digital access to Muthoot FinCorp’s high-quality, fully compliant gold loan products,”
Shaji Varghese, CEO of Muthoot FinCorp
“Gold loans, being counter-cyclical to unsecured credit, will diversify our portfolio and strengthen our offerings. BankBazaar’s consumers will gain seamless digital access to Muthoot FinCorp’s high-quality, fully compliant gold loan products,”
Investment Details
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• Rs 15 crore invested by Muthoot FinCorp
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• Rs 55 crore, including Rs 40 crore from existing investors
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• Rs 1,700 crore, with Muthoot FinCorp owning 1% stake
India’s Resilient Consumer Credit Market
India’s consumer credit market is expected to grow, driven by the increasing demand for digital financial services. BankBazaar is optimistic about the potential of gold loans, particularly in the growth of this market. Muthoot FinCorp’s Commitment
Muthoot FinCorp has committed to leveraging BankBazaar’s extensive customer base and cutting-edge analytics capabilities to drive superior customer experience, ensuring more inclusive credit access for all. Next Steps
The partnership is expected to result in seamless phygital lending experiences, enabling borrowers to access secure, high-valuation financing at fair rates. With Muthoot FinCorp investing in BankBazaar’s ongoing Series D2 round, the company is poised to expand its offerings and deliver seamless credit solutions to its customers.
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