A non-bank finance company called Indel Money, which specializes in gold lending, has joined the personal loan market.
According to the company, the feature will initially only be available to its current gold lending customers. Later, it will be made available to a wider segment.
The personal loan facility is introduced by NBFC through a digital platform. In other markets, it has just recently introduced an online gold borrowing option.
Any current Indel Money Gold Loan customer who has completed their KYC and has a good history of repaying their Gold Loans is eligible to apply for the company’s Digital Personal Loan. Based on the average transaction value of the client over the past 12 months, the loan amount will be approved.
Based on the customer’s credit score, the interest rate ranges from 10-20%, with a repayment period of 3-6 months.
Over 225 Indel Money branches across Kerala, Karnataka, Tamil Nadu, Andhra Pradesh, Telangana and Odisha provide access to personal loans.
“With the introduction of our digital personal loan, our near-term goal is to tap into the underserved need for urgent cash among our existing customers,” chief executive Umesh Mohanan told ET.
By 2023, the Kerala-based lender hopes to have over 500 branches in 11 states. Additionally, it plans to more than triple its gold loan portfolio this financial year to around Rs 1,400 crore.