slice is piloting a new lending product under the name ‘slice personal loan’, under which users can avail a loan of up to INR 5 Lakh for a tenure of 5 years
Currently, the product is being offered only to select users, with plans to expand it to more consumers in the coming months
Earlier this month, slice raised $20 Mn (about INR 170 Cr) in a debt funding round from Neo Asset Management’s Credit Opportunities Fund
Bengaluru-based fintech unicorn slice is piloting a new lending product under the name ‘slice personal loan’, under which users can avail a loan of up to INR 5 Lakh for a tenure of 5 years (60 months), sources told Inc42.
Currently, the product is being offered only to select users, the sources said, adding that it would be expanded to cover more consumers in the coming months. slice is charging an interest of up to 14% on these loans.
The startup is targeting users with high credit scores for the new product. The new offering is an extension of its existing product slice borrow, under which its users can borrow up to INR 2 Lakh from the startup and its NBFC partners with a repayment period of 12 months.
A query mail sent to slice on the new offering didn’t elicit any response till the time of publishing this story.
Earlier this month, Inc42 exclusively reported that slice is raising $20 Mn (about INR 170 Cr) in a debt funding round from Neo Asset Management’s Credit Opportunities Fund. The funding is part of a larger $30 Mn (about INR 255 Cr) debt round. While the startup has received $20 Mn, it is expected to receive the remaining amount soon.
Back then, Inc42 learnt that slice would utilise the funds for corporate purposes and working capital requirements.
Founded in 2016 by Rajan Bajaj, slice operated as a buy now pay later (BNPL) platform till 2022 and offered a credit card-esque prepaid payment instrument (PPI) that came with no annual fees, interest, or late charges.
However, after the RBI cracked the whip on fintechs in 2022 and barred NBFCs from offering credit on PPI, slice discontinued the service. The regulatory headwinds forced it to change its business model and the startup began exploring merger options.
slice currently offers UPI payments, consumer credit, and a prepaid payment banking account through its app.
Earlier this year, slice received the Competition Commission of India’s (CCI) approval for its merger with Guwahati-based North East Small Finance Bank.
slice, last valued at $1.5 Bn, is backed by marquee investors such as Tiger Global, Gunopsy Capital, Blume Ventures, Advent International’s Sunley House Capital, Moore Strategic Ventures, and Anfa.
The startup competes against the likes of KreditBee, MoneyTap and CASHe.
