Poonawalla Fincorp Enters Consumer Durables Loan Space with Digital Push

Poonawalla Fincorp Limited has introduced a fresh offering in its retail portfolio by launching consumer durables loans. This move, announced on April 22, 2025, marks a strategic step in expanding short-term credit solutions for everyday consumers across India. The company, supported by the Cyrus Poonawalla Group, is focusing on streamlining the purchase of household goods through digital finance tools.

As part of this entry, the NBFC has rolled out a digital EMI card that gives customers instant access to pre-approved limits, making consumer financing quicker and more efficient.

Making Consumer Purchases Simpler

The new EMI card allows customers to buy electronics, appliances, and other durable goods with ease. Shoppers can make purchases at partner outlets and convert them into easy monthly installments without waiting for long approval procedures. The aim is to bring convenience to people who may otherwise be reluctant to make big purchases due to upfront costs.

This initiative is a response to a growing market of consumers seeking practical financial solutions that match their spending habits, especially in semi-urban and urban areas.

Fast Approval, Flexible Terms

Loan approvals for these purchases can now be completed in less than five minutes at retail locations. The process is built for salaried individuals as well as the self-employed, ensuring a wide segment of the population can access the offering.

With flexible EMI plans and competitive interest rates, this loan structure is meant to support affordability. The user experience has also been designed to be smooth from start to finish, with digital onboarding reducing the need for physical documentation or in-person verification.

CEO Speaks on Strategic Intent

According to Arvind Kapil, the Managing Director and CEO of Poonawalla Fincorp, this new business line is more than just a consumer-focused product. It forms a core part of the company’s strategy to reach new markets and deepen engagement with retail borrowers.

“This gives us a way to scale faster, grow deeper into retail, and connect with millions of new customers,” Kapil explained. He also mentioned that the approach aligns with the company’s larger plan to serve customers at various stages of their financial lives.

Initial Expansion to 70 Locations

To begin with, Poonawalla Fincorp plans to offer this loan service in 70 cities. These include both metro areas and Tier 2 or Tier 3 towns, reflecting a commitment to making credit accessible across different regions. The company aims to work with over 5,000 dealers — including small and mid-sized businesses — who can offer the loan directly to buyers at the time of purchase.

This move creates new opportunities not only for customers but also for retailers who benefit from higher conversions and better sales.

Faster Disbursal System for Retailers

The NBFC is also upgrading its payment systems to help its dealer network. Real-time disbursals are being introduced to replace the traditional batch-wise settlement process. This will allow dealers to receive funds quickly after a transaction, improving their operational flow and reducing waiting periods.

Retailers gain the confidence to extend financing to more customers, knowing that their backend support is swift and reliable. This dealer-focused approach is expected to strengthen the network and build long-term partnerships across the country.

A Growing Market in Semi-Urban Areas

Consumer demand for appliances, gadgets, and electronics has been steadily rising in smaller cities. However, access to structured financing remains limited. By offering quick, no-fuss loans in these areas, Poonawalla Fincorp is filling a key market gap.

People in these regions often rely on cash purchases or informal lending. Now, with a formalized system backed by digital tools, they can afford quality products without disrupting their monthly budgets.

Creating More Than Just a Loan Product

The consumer durables loan is being seen as an entry point into a broader relationship with customers. Once a consumer signs up, they become eligible for future financial offerings such as personal loans, insurance, and other services. This cross-sell potential is central to the company’s overall retail roadmap.

By serving consumers at multiple touchpoints, Poonawalla Fincorp hopes to build lasting trust and offer a full suite of financial products that evolve with customer needs.

Structured Rollout in the First 90 Days

In the initial phase, the company has outlined a clear action plan. The first 90 days will focus on streamlining customer onboarding, training dealer partners, and putting tech systems in place. By building operational discipline early on, the business will be ready to scale quickly across new locations.

Automation and digitisation will remain central throughout this rollout, with an aim to reduce turnaround times and improve customer experience.

Stock Market Reaction Reflects Confidence

Following the launch announcement, shares of Poonawalla Fincorp rose by 1.85%, trading at ₹404 around 11:15 AM on April 22. The market response reflects confidence in the company’s ability to grow its presence in the retail loan segment while staying relevant to evolving consumer trends.

Investors appear optimistic about the firm’s shift toward customer-centric offerings and fast-track lending solutions.

Conclusion

Poonawalla Fincorp’s foray into consumer durables loans demonstrates a clear focus on serving everyday financial needs with speed and convenience. By introducing a digital EMI card, quick approval processes, and a dealer-friendly backend, the company is building a complete solution for modern retail finance. Under the leadership of Arvind Kapil, this initiative is expected to deepen customer ties and boost retail lending strength across India.