(MENAFN- KNN India) New Delhi, Sep 17 (KNN) SMFG India Credit (SMICC), a non-banking financial company (NBFC), has announced a partnership with PhonePe to provide collateral-free loans to merchants on the digital payments platform.

The alliance will enable SMICC to extend Merchant Cash Advance (MCA) facilities to registered traders, particularly those in Tier-2 and Tier-3 towns, with the aim of improving access to working capital.

Ajay Pareek, Chief Business Officer, SMFG India Credit, said the collaboration would help widen the reach of its financial solutions to India's self-employed and small business community.

“By leveraging PhonePe's extensive network and our tailored financial products, we aim to empower these businesses with the capital they need to grow, fostering greater financial inclusion and contributing to overall economic progress,” he said.

Hemant Gala, CEO, PhonePe Lending, highlighted the partnership's role in bridging the credit gap for micro-merchants.

“This collaboration combines SMICC's lending expertise with PhonePe's reach to democratise credit access for India's underbanked merchants. The growth potential in the heartland of India presents a crucial opportunity for digital financial inclusion,” he said.

PhonePe, which has a merchant network of over 45 million, has been expanding its role in digital financial services.

The partnership is expected to strengthen SMICC's position in the merchant cash advance space while supporting grassroots financial empowerment and contributing to the broader digital lending ecosystem.

(KNN Bureau)

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