In April 2025, Poonawalla Fincorp (PFL) announced the launch of its Consumer Durables Loans business. As part of this initiative, the company also introduced a digital EMI card with pre-approved limits, enabling customers to purchase consumer durable products more conveniently. This move marks PFL's strategic entry into a fast-growing, high-velocity segment of retail lending, reinforcing its ability to build a deeper, more scalable retail franchise while boosting profitability and lifetime customer value.

The new offering aims to provide instant loan sanctions, within five minutes, at dealer locations, catering to both salaried and self-employed individuals. PFL will offer flexible EMI structures and competitive interest rates through its extensive retail partner network. The company describes this launch as a key lever to accelerate the growth of its retail business—expanding reach, deepening market presence, and improving profitability, while potentially onboarding millions of new customers.

Consumer durable loans represent a strategic opportunity for PFL to rapidly grow its customer base through instant, point-of-sale financing and digital onboarding, enabling real-time customer acquisition and efficient scale-up via a tech-first approach. This offering also serves as a powerful cross-sell engine: customers opting for consumer durable loans can be converted into leads for personal loans, insurance, and other financial products, generating high engagement and strong visibility across multiple geographies and customer segments.

PFL’s initial focus is to institutionalize its end-to-end customer acquisition process within the first 90 days and then scale the business across geographies, aligning with its risk-first strategy. To enhance operational efficiency, the company is also implementing real-time disbursements for dealers, replacing the traditional batch processing system with faster settlements.

In the first phase, PFL plans to expand into 70 locations across major metros as well as Tier 2 and Tier 3 cities, in partnership with 5,000 dealers, including regional retailers and small businesses. The company is also collaborating with leading OEMs that possess strong regional market presence. PFL notes that consumer durables financing currently has a significant penetration rate, with rapid growth being seen particularly in smaller cities, creating an opportunity to engage first-time borrowers seeking financing for electronics and appliances.

With this launch, PFL has now introduced six new businesses as part of its strategic roadmap, further strengthening its secured lending portfolio. As of March 31, 2025, the company operates in 18 states and 2 Union Territories and manages an Assets Under Management (AUM) of approximately USD 4.27 billion.