Merchant loans worth ₹300 cr getting disbursed via PhonePe app every month

/2 min read

ADVERTISEMENT

The digital payments firm expects ₹3,600 crore worth of disbursements in 2024-25 on an annualised basis.
Merchant loans worth ₹300 cr getting disbursed via PhonePe app every month
PhonePe Lending CEO Hemant Gala 

PhonePe Lending chief executive officer Hemant Gala says the PhonePe platform is disbursing about ₹300 crore worth of merchant loans every month.

The digital payments firm expects ₹3,600 crore worth of disbursements in 2024-25 on an annualised basis.

Merchant loans typically range from ₹60,000 to ₹5 lakh and the average loan amount is ₹1.5 lakhs, says Gala.

“We have disbursed upward of about two lakh loans to our merchants. And it's seeing a gradual scale up, looking at the kind of nature of merchants that we have,” says Gala, adding that it's a good mix of MSMEs.

On the lending side, PhonePe runs three lines of businesses - merchant lending, unsecured personal loans, and secured loans which the company introduced last month.

Fortune India Latest Edition is Out Now!
India's Top 100 Billionaires

August 2025

As India continues to be the world’s fastest-growing major economy, Fortune India presents its special issue on the nation’s Top 100 Billionaires. Curated in partnership with Waterfield Advisors, this year’s list reflects a slight decline in the number of dollar billionaires—from 185 to 182—even as the entry threshold for the Top 100 rose to ₹24,283 crore, up from ₹22,739 crore last year. From stalwarts like Mukesh Ambani, Gautam Adani, and the Mistry family, who continue to lead the list, to major gainers such as Sunil Mittal and Kumar Mangalam Birla, the issue goes beyond the numbers to explore the resilience, ambition, and strategic foresight that define India’s wealth creators. Read their compelling stories in the latest issue of Fortune India. On stands now.

Read Now

PhonePe launched secured lending products on its platform by partnering with a network of non-banking financial companies (NBFCs). Gala says banks will also join the platform in the next 30 days. The fintech offers loan against mutual funds, loan against property, loan against gold, home loans, two-wheeler loans and four-wheeler loans.

“We have been lending for the past one year. We've been strongly invested in this business. There are two-sided networks that we have – over 535 million registered users and 39 million merchants. The idea in financial services and within that in lending was to cater to the needs of both the segments,” says Gala.

Gala says digitisation is likely to help bring down the cost of acquisition for PhonePe’s lending.

On the commission charged to NBFCs and banking partners by PhonePe, Gala says in some product categories it's fixed while in others it's a percentage of the disbursement amount that they are doing. “So it's a mix of both depending on the product categories right now,” he says.

Fortune India is now on WhatsApp! Get the latest updates from the world of business and economy delivered straight to your phone. Subscribe now.