India’s UPI revolution is transforming not just how we pay money — but also how we borrow money. Leading platforms like PhonePe, traditionally known for instant digital transactions, are now stepping into the world of digital lending.
In 2025, PhonePe is expanding its offerings to include personal loans, small credit lines, and Buy Now Pay Later (BNPL) services — either directly or through its NBFC partners. Many users are seeing pre-approved alerts on the app, but how does the PhonePe loan feature actually work?
In this complete guide, we’ll explain:
- What kind of loans you can get through PhonePe
- Who is eligible
- How to applyWhat are the latest features, rates, and limitations
- Common mistakes to avoid
Does PhonePe Offer Loans in 2025?
Yes. PhonePe has begun offering digital loans, credit lines, and instant EMI offers on the app through approved partnerships with NBFCs and financial institutions.
You can find loan-related features under:
- Switch apps section → Loan/Finance
- Offers menu → Credit available for you
- Onboarding prompts → During purchases or recharges (BNPL)
Currently, PhonePe itself isn’t an NBFC or bank — but it facilitates:
- Instant personal loans for eligible users
- Buy now, pay later schemes (0% interest or low EMIs)
- Merchant loans or working capital offers for small businesses
These services are provided in association with registered lenders like:
- Navi
- Axio (formerly Capital Float)
- ZestMoney
- Piramal Finance
- Tata Capital
- Lendingkart
- And others
Who Is Eligible for a PhonePe Loan?
Eligibility depends on various factors. But generally, here’s who qualifies:
- Must be a resident Indian (18–60 years)
- Active PhonePe user with regular UPI activity
- PAN card-linked bank account
- Strong repayment history or high credit score (750+)
- Stable income — salaried or self-employed
- No recent loan defaults
- Good transactional behavior on PhonePe
Tip: If you’re using PhonePe regularly for bill payments, QR code scanning, and online shopping — it increases your chances of pre-approved offers over time.
PhonePe Loan Key Features (2025 Overview)
Feature | Details |
Loan Type | Personal Loan, BNPL, PayLater, Merchant Loans |
Loan Partners | Navi, Axio, ZestMoney, Piramal, others |
Loan Amount Range | ₹2,000 – ₹5,00,000 (varies by profile) |
Interest Rate Range | 9.5% – 36% p.a. (based on lender & credit score) |
Repayment Tenure | 3 to 36 months |
Processing Fee | 0% – 3% (deducted from disbursed amount) |
Application Time | Less than 5 minutes via app |
Credit Score Impact | Yes (loan is reported to CIBIL/Equifax) |
Collateral Required | None (fully unsecured) |
Most offers shown inside PhonePe are pre-approved. Some may require minimal documentation if the amount is high.
Steps to Apply for a Loan via PhonePe
Step 1: Open the PhonePe app (ensure it’s updated)
Step 2: Click on “Switch” at the bottom → Choose “Loan”, “Credit”, or “Finance” partners
Step 3: Browse offers like Navi Personal Loan, Axio PayLater, or ZestMoney
Step 4: Complete KYC if required
Step 5: Select loan amount, EMI plan, agree to terms
Step 6: Loan gets disbursed to your linked bank account or converted to EMI voucher
Everything happens within 5–10 minutes in most cases. For small-value loans (<₹10,000), you may not be asked for any documents.
What Types of Loans Are Available?
PhonePe’s credit products are gradually expanding in 2025 to include:
1. Instant Personal Loan
For salaried/self-employed users who need ₹5,000 – ₹200,000.
Ideal for:
- Medical emergencies
- Travel expenses
- Rent payments
- Bulk purchases
2. Buy Now, Pay Later (BNPL)
PhonePe lets you shop and convert to small EMIs using Axio or ZestMoney during checkout.
- Zero-cost EMIs possible for selected merchants
- Tenure: 3 to 9 months
- Approval within seconds
3. Merchant (Business) Loans
If you accept UPI payments via PhonePe Business QR – you might qualify for working capital loans based on your sales history.
- Loan amounts: ₹25,000 – ₹5 lakh
- Partners: Lendingkart, Indifi, Piramal, etc.
What Are the Interest Rates on PhonePe Loans?
Interest rates vary by lender and credit score.
Here’s an approximate range:
- 9.5% – 14% → If your CIBIL is above 750 and you’re salaried
- 15% – 22% → If you’re self-employed with average financials
- 24% – 36% → For BNPL or micro-loans from fintech partners
- 0% (subsidized) → For select PayLater merchant tie-ups
Remember to read the APR (Annual Percentage Rate) carefully — as that includes fees + interest + taxes.
Documents Required for Verification
Based on type & loan size, here’s what’s usually asked:
- PAN card
- Aadhaar (linked to mobile)
- Bank account proof
- Live selfie (for e-KYC)
- Salary slip or bank statement (if needed)
You don’t need physical documents in most cases. KYC and approval are digital.
Important Dos and Don’ts
Do:
- Regularly use PhonePe to improve internal creditworthiness
- Repay EMIs on time — delayed PhonePe/BillPay dues affect CIBIL
- Understand the partner offering the loan
- Read prepayment, processing, and foreclosure charges
Don’t:
- Treat it as “free” money — it’s a real, regulated loan
- Ignore EMI due dates — missing even one reports to credit bureaus
- Take multiple microloans without budgeting
Pro Tip: PhonePe loans show up on your CIBIL — so rejecting offers or missing repayments affects your overall future loan chances across all banks too.
Final Thoughts
PhonePe has transformed from a simple payments app into a powerful fintech ecosystem, and its loan feature is a prime example of that evolution.
In 2025, it allows eligible users to:
- Get personal loans quickly without paperwork
- Enjoy smart BNPL/EMI offers seamlessly during checkout
- Access growing credit limits over time, based on app usage
But like any loan, you should apply only when needed, borrow responsibly, and repay on time to maintain a healthy credit score.
For frequent users with good repayment history, PhonePe loans are fast, digital-first, and increasingly customizable — making it a powerful option in India’s credit landscape.
FAQ – PhonePe Loan Feature
1. Why don’t I see any loan offer in PhonePe?
A. Your usage may not meet the threshold OR you may not be eligible based on lender filters (CIBIL, age, KYC).
2. Is PhonePe a direct lender?
A. No. It’s a facilitator. Loans are provided by RBI-approved NBFCs/banks.
3. Are PhonePe loans safe and legal?
A. Yes — if you borrow only via PhonePe’s official finance partners. Avoid shady loan apps.
4. Can I repay early?
A. Yes, most lenders support prepayment or foreclosure — but check for early closure charges.
5. What is the maximum loan amount available?
PhonePe gives different types of loans according to the purpose. The maximum amount for a personal loan is Rs 5,00,000 and the maximum amount for a business loan is Rs 4,00,000 lakh.
6. How much time does it take to receive the phonePe personal loan amount?
After completion of the application process, the loan amount will be credited to your account within 2-3 days.
7. What is the customer care number on the phone?
To make phonepe services easier and in case of any risk, you can get the solution by calling phonePe customer care number 80 6872 7374.