SMFG India Credit and PhonePe Partner to launch loans for Micro-Merchants

·         The partnership will empower millions of merchants to gain access to easy and seamless credit

Hyderabad, September 16, 2025 – SMFG India Credit (SMICC), one of India’s leading NBFCs, has entered into a strategic partnership with PhonePe to provide collateral-free credit to its merchants. This alliance will enable SMFG India Credit to offer Merchant Cash Advance (MCA) loans to registered merchants on the PhonePe platform, many of whom are based in Tier-2 and Tier-3 towns across the country.

This partnership will enable SMICC to further solidify its position as a market-leading lender in the merchant cash advance space, reinforcing its role as a key player in the digital lending ecosystem. For PhonePe, this collaboration deepens its commitment to its extensive merchant base by delivering instant, accessible credit solutions that fuel business expansion and support long-term growth.     

Speaking on the partnership, Mr. Ajay Pareek, Chief Business Officer, SMFG India Credit, said, “We are excited to partner with PhonePe as it will allow us to make our financial solutions more accessible to India’s self-employed and small business community. This collaboration allows us to reach millions of merchants on the PhonePe platform, offering them convenient and seamless access to our merchant loans. 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 thus contributing to the overall economic progress of the country.”

Commenting on the partnership, Mr. Hemant Gala, CEO, PhonePe Lending, said, “We’re excited to partner with SMICC to deliver credit solutions across our 45+ million merchant network. This collaboration combines SMICC’s lending expertise with PhonePe’s reach to democratize credit access for India’s underbanked micro-merchants. The growth potential in the heartland of India, presents a crucial opportunity for digital financial inclusion. We’re not just bridging the credit gap—we’re unlocking the potential of micro enterprises that power India’s economy and driving grassroots financial empowerment.”