2,000 Per cent Returns: Poonawalla Backed NBFC Launches Consumer Durable Loans With Digital EMI Card To Accelerate Retail Lending Growth
In the last one year the stock price has given negative 23 per cent return while in 5 years it has given multibagger returns of 2,040 per cent.
Poonawalla Fincorp Limited (PFL), a non-banking finance company (NBFC) focused on consumer and MSME lending and promoted by the Cyrus Poonawalla Group, has announced its entry into the Consumer Durables Loans market on April 22, 2025. The company is also introducing a digital EMI card that offers pre-approved limits to customers, facilitating the purchase of consumer durable products.
This strategic move allows Poonawalla Fincorp to tap into the rapidly expanding retail lending segment, enhance customer acquisition, and improve profitability. The company aims to leverage instant, point-of-sale loans and digital onboarding to efficiently scale its customer base through a tech-first approach.
Poonawalla Fincorp anticipates that the new consumer durable loan offering will create a cross-sell opportunity for other financial products, including personal loans and insurance. Commenting on the launch, Mr. Arvind Kapil, Managing Director & CEO of 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.”
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The new product is designed to provide loan sanctions within 5 minutes at dealer locations and offers flexible EMI structures, competitive interest rates, and access to a wide network of retail partners. This initiative aligns with the increasing demand for consumer durable loans in India, particularly in Tier 2 and Tier 3 cities, where finance penetration is growing significantly.
Poonawalla Fincorp estimates the current finance penetration in consumer durables in India to be 30 percent. The company aims to capitalise on the increasing number of first-time borrowers seeking financing for items like smartphones, electronics, and appliances.
The company's initial focus will be on institutionalizing acquisition processes within the first 90 days. Poonawalla Fincorp plans a phased expansion, starting with 70 locations across key metro areas and Tier 2 and Tier 3 cities, and will collaborate with 5,000 dealers, including regional retailers and small businesses, along with partnerships with leading OEMs.
In addition to the new loan offering, Poonawalla Fincorp is also enhancing its payment systems to enable real-time disbursements for dealers. The launch of the consumer durable loan business marks the sixth new business launched by PFL.
Poonawalla Fincorp Limited is a Pune-headquartered, Cyrus Poonawalla Group-promoted non-deposit taking systemically important non-banking finance company (ND-SI-NBFC) registered with the Reserve Bank of India (RBI). The company has been in operation for nearly three decades and is listed on the BSE Limited (BSE) and the National Stock Exchange of India Limited (NSE).
The company operates across 18 states and 2 Union Territories and has an Asset Under Management (AUM) of approximately Rs 35,550 crore as of March 31, 2025. As of December 31, 2024, it employs over 2,560 people. Poonawalla Fincorp’s financial service offerings include pre-owned car finance, personal loans, loans for professionals, business loans, loans against property, machinery loans, education loans, commercial vehicle loans, shopkeeper loans, and gold loans. In the last one year the stock price has given negative 23 per cent return while in 5 years it has given multibagger returns of 2,040 per cent.
Disclaimer: The article is for informational purposes only and not investment advice.