Paisabazaar, a digital credit marketplace, has launched a new product called “Loan Against Car” to expand its secured lending portfolio. This product allows individuals to use their existing vehicle as collateral to access funds, with the option to borrow up to 200% of the car’s value. The loan tenure can range from 1 to 5 years, and the entire process will be fully digital. Paisabazaar has partnered with lenders such as HDFC Bank, Tata Capital, and others to offer this product.
The Loan Against Car product is designed to improve access to credit for consumers who may have limited borrowing options from traditional sources. It is a type of secured loan that allows individuals to unlock the value of their existing vehicle without having to sell it. The ownership of the car remains with the borrower, while the lender places a lien on the vehicle until the loan is repaid. This product is typically used to meet personal or business financial needs and offers quicker processing and lower interest rates compared to unsecured loans.
Paisabazaar’s CEO, Santosh Agarwal, stated that the launch of Loan Against Car is a natural step towards scaling and expanding the company’s secured portfolio. The company plans to work closely with partners and the industry to address consumer needs and build a more inclusive credit ecosystem. With over 65 partnerships with banks, NBFCs, and fintechs, Paisabazaar receives more than 20 lakh enquiries each month and continues to diversify its offerings across consumer segments.
The introduction of Loan Against Car aligns with Paisabazaar’s strategy to deepen its presence in secured loan segments, such as home loans and loans against property. The company aims to provide a more comprehensive range of financial products to its customers, making it a one-stop-shop for all their credit needs. By launching this new product, Paisabazaar is poised to further strengthen its position in the digital lending space and cater to the evolving needs of its customers.