BharatPe will now offer Gold Loans

BharatPe, a Merchant's payments platform has introduced gold loans for their merchant's partners. This initiative has marked their entry in the secured loans category. The company was earlier working in the unsecured loans category by offering collateral free loans to its partners. To offer gold loans, BharatPe has partnered with Reserve Bank of India (RBI)-approved nonbanking financial companies (NBFC) to offer gold loans up to ₹20 lakhs. Currently, the company is offering gold loans in Delhi-NCR, Bengaluru, and Hyderabad. It is looking to expand it to 20 cities by the end of this year. By the end of 2022, the company plans to facilitate disbursals of ₹500 crores at an interest rate of 0.39% per month. Chief Executive Officer (CEO) of BharatPe Suhail Sameer while explaining this new scheme said: “Gold loans will enable us to further empower our merchant partners and positively impact millions of small businesses. We had conducted a pilot for the product for 2 months and the response has been very encouraging. We facilitated disbursals of ₹10 crores during the pilot phase.” Till now, BharatPe has facilitated unsecured loans, in partnership with NBFCs, worth ₹3,000 crores to three lakh merchant partners.