Jio Financial Services To Now Offer Digital Loans Against Securities

Jio Finance Limited (JFL), the NBFC arm of Jio Financial Services Limited, has diversified its loan offerings by introducing loans against securities. 

In a statement, the company said that the new offering will allow customers to leverage their investments, such as shares and mutual funds, to avail loans of up to INR 1 Cr with interest rates starting at 9.99%.

The company claimed that the entire process will be digital and the loan will be disbursed within 10 minutes. 

Jio Financial Services said that the loan can be availed via the JioFinance app and will have a maximum tenure of up to 3 years, with no foreclosure charges.

Currently, fintechs like Groww, Zerodha, PhonePe, Paisabazaar, Dhanlap, 50Fin, Volt Money, among others, offer loans against securities in India. 

Besides, banks like IDBI Bank, Federal Bank, Kotak Mahindra Bank, and SBI also offer loans against shares and mutual funds.

The new offering comes a few days after Jio Financial Services (JFS) infused INR 1,000.24 Cr (about $117 Mn) in Jio Finance Limited to further expand its offerings. 

Incorporated by Reliance in 2000, Jio Finance was rechristened from its erstwhile name Reliance Retail Ventures Limited back in August 2023. 

The NBFC provides home loans, home loan balance transfer, loans against mutual funds, loans against property and corporate financing via the JioFinance app. As per its financial disclosure in Q3 FY25 investor presentation, Jio Financial Services’ assets under management stood at INR 4,199 Cr.

JFS’ Expanding Fintech Play 

JFS is actively strengthening its presence in the fintech sector through a series of investments, acquisitions, new offerings and partnerships. 

JFS MD and CEO Hitesh Sethia, during the Q3 analyst call, suggested that the NBFC plans to drive its loan book growth through both internal and external partnerships. 

Last month, the company acquired a 100% stake in its subsidiary Jio Payments Bank by buying the entire stake of SBI for INR 104.54 Cr. 

The company has also partnered with BlackRock to enter the mutual funds space under Jio BlackRock Asset Management. In January this year, the companies announced a cumulative investment of  INR 117 Cr in the venture. 

Besides, the company has also partnered BlackRock to foray into the wealth management and brokerage space. 

Recently, it was also reported that JFS was in talks with German insurer Allianz SE to explore a partnership in the insurance business, after the latter severed its ties with the Bajaj Group. 

JFS operates through multiple entities like Jio Finance, Jio Insurance Broking, Jio Payment Solutions, Jio Finance Platform and Service. 

In Q3 FY25, the company’s consolidated net profit remained flat at INR 294.78 Cr as against INR 293.82 Cr in the year-ago quarter. Revenue from operations rose 5.7% to INR 438.35 Cr during the quarter under review from INR 414.33 Cr in Q3 FY24. 

Shares of Jio Financial Services ended today’s trading session 5.2% higher at INR 224.80 on the BSE.