A New Era in Co-Lending: L&T Finance and CRED Join Hands to Offer Unsecured Personal Loans

Nitin Konde, Bhoraniya Huda Hifzur Rehman

Aug 22, 2024 — 2 min read

A New Era in Co-Lending: L&T Finance and CRED Join Hands to Offer Unsecured Personal Loans

A renowned non-banking finance company (NBFC), L&T Finance, has just announced its strategic push into the co-lending industry. This foray is being made possible by a significant partnership with the technology powerhouse CRED.

With the help of this partnership, L&T Finance will be able to expand its operations into the realm of digital lending by providing CRED members with the opportunity to get unsecured personal loans.

The CRED Cash product, which is being enabled by L&T Finance in cooperation with Newtap Finance Private Ltd., will now provide members of CRED with access to credit, as stated in the official statement.

A speedy access to credit is promised by the new arrangement, which will enable members to obtain loans in a matter of minutes. Additionally, the new arrangement will provide members with flexible repayment terms and competitive interest rates.

Sudipta Roy, the Managing Director and Chief Executive Officer of L&T Finance, expressed his excitement about the company's entry into the co-lending industry by saying, "We are excited to announce our partnership with CRED."

This affiliation represents LTF's entry into the co-lending area, which will harness the power of LTF's considerable experience in the financial services industry, CRED's large wealthy client base and excellent reputation for trustworthiness, and NewTap's competence in digital lending and risk assessment. This association will mark LTF's introduction into the co-lending field.

The Partnership and Its Future

L&T Finance is currently going through a period of tremendous expansion, which coincides with the formation of this collaboration. The loan book of the company experienced year-on-year growth of 11 per cent, eventually reaching INR 6,667 crores in the first quarter of fiscal year 25.

The total disbursements for the quarter amounted to INR 1,178 crores. It is anticipated that the Personal Loans business at L&T Finance will continue on its upward trajectory, which will be driven by strategic alliances, development into new geographical areas, and initiatives to retain customers.

Within the field of co-lending, this relationship between L&T Finance and CRED is well-positioned to establish a new standard of excellence. This platform will provide A sophisticated audience with a simplified and customer-focused loan experience.

Regarding the future of the partnership, Roy stated further that L&T believes that this partnership will further enhance the company's presence in the digital lending space with a focus on customer experience.

Additionally, the firm thinks that this partnership will provide CRED's customers with loans in a couple of minutes with flexible repayment tenures, at competitive interest rates, thereby providing customers with a borrowing experience that is both unique and seamless.