wordpress blog stats
Connect with us

Hi, what are you looking for?

Groww forays into lending, will offer pre-approved credit line to users without paperwork

Despite roots in stock trading, the fintech company will now be joining players like CRED and may enter neobanking too.

Groww, an online investment platform similar to the likes of Zerodha and Upstox, will now be offering credit lines to a few users*. The lending vertical, Credit from Groww, will not require any documents as it will be pre-approved based on the transaction history of its users.

Groww has partnered with IDFC First Bank to provide this credit line; the company will not be asking users to pledge collateral against loans, as per the FAQ section in the app. It also said that the interest will be charged on the amount withdrawn and not the limit amount. Users will not be allowed to use this credit line to invest or trade in the stock market.

Groww has been looking to augment its revenue after it raised nearly $250 million at a valuation of $3 billion last year. Entrackr reported that the company clocked operating revenue of nearly half a crore in 2020 with losses worth Rs eight crores.

Groww’s competitors

Credit from Groww will be competing with the likes of CRED Cash, LoanTap, InCred, among others.

  • CRED Cash: The credit line was launched in 2020 offering CRED’s members a pre-approved amount of up to Rs 5,00,000 with no forms, documents, phone calls, or physical visits, according to News18. Kunal Shah said that CRED Cash, its lending tool which has disbursed Rs 2,415 crore in loans to date, has a default rate of less than 1 percent.
  • InCred: The company specialises in lending with a variety of loans like personal, education, and MSME loans. The company offers personal loans of up to Rs 15 lakh.
  • LoanTap: It offers personal loans online after some paperwork and a representative’s visit to people earning more than Rs. 30,000 per month, according to its website.

Groww’s other offerings

Groww started as a stock trading platform that offered mutual funds and fixed deposits on its platform. The company also allows its users to invest in American stocks. It became a unicorn in April 2021 and tripled its valuation within six months.

The company is also looking to enter neobanking (digital-only banking) as it seeks to become a one-stop solution for banking and investment for millennials, according to a report in Entrackr.

Advertisement. Scroll to continue reading.

The company used to offer digital gold on its platform until SEBI cracked down on fintech platforms citing a legal breach. A circular was issued by the National Stock Exchange of India (NSE) restricting members “from engaging, either as principal or employee, in any business, other than that of securities or commodity derivatives”. It is likely that Groww will have to reckon with SEBI and RBI over its foray into lending.

*Disclaimer: This author has an account with Groww, with investments in stocks and mutual funds. He was offered a credit line by Groww. 

Also Read:

Have something to add? Post your comment and gift someone a MediaNama subscription.

Written By

Click to comment

You must be logged in to post a comment Login

Leave a Reply

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

While the market reality of popular crypto-assets like Bitcoin may undergo little change, the same can't be said for stablecoins.

News

Bringing transactions related to crypto-assets within the tax net could make matters less fuzzy.

News

Loopholes in FEMA and the decentralised nature of crypto-assets point to a need for effective regulations.

News

The need of the hour is for lawmakers to understand the systems that are amplifying harmful content.

News

For drone delivery to become a reality, a permissive regulatory regime is a prerequisite.

You May Also Like

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ