PhonePe, a Flipkart-owned digital payment company, has announced the launch of its new loan product. This peer-to-peer loan product will allow users to borrow money from other users on the platform.
PhonePe is claiming that this is a first-of-its-kind product in India and that it will offer better rates than traditional lenders. Let’s take a closer look at this new product and see how it works.
How to Get PhonePe Loan
The PhonePe Loan is a small personal loan that can be used for any purpose. It is available to all users who have a PhonePe account and a valid PAN card. The minimum amount you can borrow is Rs. 1,000, and the maximum amount is Rs. 10,000.
Interest rates start at 12% per annum, and there are no processing fees or hidden charges. To apply for a PhonePe Loan, simply open the PhonePe app and select the “Loan” option.
You will need to provide some basic information about yourself, including your PAN number, age, income level, and occupation. If you pass the basic eligibility criteria, then you will be able to see your loan options. You can borrow up to Rs. 10,000 at any time, and you can also repay your loan early if you want to.
Eligibility Criteria for PhonePe Loans
The eligibility criteria for PhonePe Loans are as follows:
- You must be an Indian citizen
- You must have a valid PAN card
- You should provide two proofs to verify your identity
- Your age should be 18 years or above
- You should have an active PhonePe account
- You must have a smartphone with internet connection
- You should have a functional UPI ID linked to the PhonePe account
Loan offer in phonepe
You can choose anyone as your loan guarantor. This person will not need to have a PhonePe account.
The guarantor can also be your family member, but they will need to provide details of their bank account so that the borrowed amount can be transferred to them if you fail to repay your loan on time.
PhonePe Loan Interest Rates
The interest rate for PhonePe Loans is decided by the bank or NBFC which has issued the loan to you. It varies according to your monthly income, the amount that you are borrowing, and your repayment history.
You can check your interest rate by clicking on the “View Interest” button when you are filling out the application form.
Loan Repayment
You need to repay your PhonePe Loan within 90 days of receiving the money. The debited amount will be withdrawn from your linked bank account on a monthly basis.
You can also repay the loan early, if necessary, but you need to keep in mind that any prepayment fees will depend on your interest rate and may vary from bank to bank.
Advantages of PhonePe Loans
The main advantage of the PhonePe Loan is that it offers a fairly quick and easy way for people to borrow money from other users on the platform.
The PhonePe Loan will serve a wide range of purposes which traditional lenders might not be able to accommodate. This includes weddings, renovations, down-payments for property purchases, medical emergencies, and other needs.