Initially, the facility will be available to its existing gold loan customers, the company said. It will later be expanded to a broader segment.
The NBFC is using a digital platform for launching the personal loan facility. It had recently launched an online gold loan facility in some markets.
Any existing KYC-fulfilled Indel Money gold loan customer with a decent gold loan repayment track can apply for Indel Money’s digital personal loan. The loan amount will be sanctioned based on the average transaction value of the customer for the previous 12 months. The rate of interest is in the range of 10-20%, based on the customer’s credit score and the repayment tenure is 3-6 months.
Indel Money offers the personal loan facility at more than 225 branches in Kerala, Karnataka, Tamil Nadu, Andhra Pradesh, Telangana and Odisha.
Chief executive Umesh Mohanan told ET: “With the launch of our digital personal loan, our near-term goal is to tap the underserved demand for immediate cash among our existing customers.”
The Kerala-based lender aims to take its branch tally to more than 500 in 11 states by 2023. It is also targeting to more than double its gold loan book to over Rs 1,400 crore this fiscal year.