FREO, India’s 1st credit-led Neobank, made a partnership with HDB Financial Services (HDBFS), a Non-Banking Financial Company (NBFC), to provide 2 credit products such as a ‘credit line’ and a ‘high-ticket personal loan’ for its customers across multiple cities in India.
i.High ticket personal loans: Under the partnership, a high-ticket personal loan of up to Rs 10 lakh would be offered for the customer which could be used for their bigger expenses such as home renovation, buying a vehicle, etc.
- The credit line, which is the flagship program of FREO, will enable consumers to get access to credit anywhere, anytime via a smartphone, the personalized amount approved under it could be used by the customers immediately.
- The credit limit under the ‘credit line’ will be restored after the repayment of the borrowed amount by the consumers and the interest will be levied only on the current amount used (not the overall limit).
Note – The partnership would enable both FERO and HDBFS to develop and deliver multiple financial products through digital channels.
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The Housing Development Finance Corporation Limited Mutual Fund (HDFC MF) has launched the New Fund Offer(NFO) of HDFC Banking and Financial Services Fund for retail investors.
About HDB Financial Services (HDBFS):
It is a subsidiary of HDFC Bank.
Establishment – 2007
Headquarters – Mumbai, Maharashtra
MD & CEO – G. Ramesh
About FREO (formerly known as Money Tap):
i.FREO’s parent company started its operations in India with the launch of Money Tap in 2016.
ii.Money Tap is India’s 1st App-based credit line, it will provide a personal loan through the app in partnership with banks and NBFCs.
Headquarters – Bangalore, Karnataka