What Paul Merchants Finance does

Paul Merchants Finance Private Limited is an Indian Non-Banking Financial Company (NBFC) headquartered in Chandigarh, founded in 2010 and formerly known as Paul Fincap Private Limited. It operates as part of the broader Paul Merchants Ltd (PML) group conglomerate and positions itself as a diversified, multi-service financial platform. Its core lending product is Loan Against Property (LAP) with ticket sizes from ₹10 lakhs to ₹5 crores at interest rates starting from 11% p.a. and tenure up to 12 years, segmented into four tailored schemes — SAMRIDDHI (self-employed professionals), SAFAL (traders/entrepreneurs), SRIJAN (RERA-approved builders), and SAHARA (salaried individuals). Beyond LAP, the company offers gold loans, NBFC-to-NBFC lending, insurance distribution through the Coverpay platform (partnering with Care Health Insurance), prepaid card services via the PaulPay mobile app, travel services through PML Holidays, and domestic/international money transfer through the Paul Money agent network.

The company's distribution is sales-led with physical branches across India (including a Chandigarh HQ and a Dehradun branch) and digital channels for self-serve products. Its underlying technology stack includes a core banking system implemented by Sesame Software (a Speridian company) in September 2022 and mobile applications for PaulPay on iOS and Android. Revenue is generated through interest income on secured loans (LAP, gold loans, NBFC-to-NBFC finance), commissions from insurance distribution, interchange and transaction fees on prepaid card usage, service fees and commissions from travel bookings, and fees from money transfer services. The company is privately held and controlled by founder Mr. S. Paul (Chairman & Managing Director), with Rajneesh Bansal as Managing Director of the parent PML group and Shaibu Geevarghese Cherian as Whole Time Director. No external PE/VC funding rounds are documented.

Name

Paul Merchants Finance

Legal name

Paul Merchants Finance Private Limited

Website

https://paulmerchantsfin.com

Company type

Private

Founded year

2010

Operating status

Operating

Short description

Paul Merchants Finance is a Chandigarh-based Indian NBFC offering Loan Against Property, gold loans, NBFC-to-NBFC lending, insurance distribution (Coverpay), prepaid cards (PaulPay), travel services, and money transfer to retail customers, self-employed professionals, and small businesses across India.

Ownership category

akta.pro rank

Product category

Non-Banking Financial Services (NBFC)

NAICS

Sales Financing (52222), Credit Card Issuing (52221), Sales Financing (522220)

SIC

Short-Term Business Credit Institutions (6153), Miscellaneous Business Credit Institution (6159)

akta.pro primary industry

Distributor & Dealer Finance (Channel Financing) (FSABAHAE)

akta.pro secondary industry

Private-Label & Store Card Schemes (FSAMAAAE)

Keywords

• Loan against property
• Non-banking financial services
• Insurance distribution
• Prepaid card services
• Money transfer services

Headquarters

HQ city

Chandigarh

HQ country

India

HQ region

Asia

Offices3 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Infrastructure

Revenue model

1. Loan Interest Income: Interest income from Loan Against Property (LAP) products, gold loans, and NBFC-to-NBFC lending. The company offers LAP loans up to ₹5 crores at rates starting from 11% p.a. with tenure up to 12 years.
2. Insurance Distribution: Commission income from distributing insurance products (motor, health, term, home, travel) through the Coverpay platform in partnership with Care Health Insurance and other insurers.
3. Prepaid Card Services: Transaction fees and interchange revenue from PaulPay prepaid cards used for shopping, bill payments, recharges, and e-commerce transactions.
4. Travel Services: Service fees and commissions from travel bookings through PML Holidays including vacation packages, tours, and travel insurance.
5. Money Transfer Services: Fees from domestic and international money transfer services through the Paul Money agent network.

Pricing tiers

Go-to-market motion1 record

Distribution channels5 records

Marketing channels5 records

Core offering

Paul Merchants Finance is an NBFC that provides secured loans against residential or commercial property (Loan Against Property) with amounts from ₹10 lakhs to ₹5 crores at interest rates starting from 11% p.a. and tenure up to 12 years, alongside NBFC-to-NBFC lending. The company also distributes insurance (motor, health, home, term, travel) through its Coverpay platform, issues prepaid cards via PaulPay, offers travel services through PML Holidays, and provides domestic and international money transfer services through its Paul Money agent network.

Product overview

Paul Merchants Finance is a diversified Non-Banking Financial Company (NBFC) offering a portfolio of financial products. The core offerings include Loan Against Property (LAP) with specialized schemes for different borrower segments (SAMRIDDHI for self-employed professionals, SAFAL for traders, SRIJAN for real estate builders, and SAHARA for salaried individuals), NBFC-to-NBFC lending, insurance distribution through Coverpay brand, prepaid card services via PaulPay, travel services through PML Holidays, and money transfer services. The company operates as a multi-product financial services platform serving various customer segments including individuals, businesses, and other financial institutions.

Differentiator

Problem solved

Functional benefit

Brands

• Coverpay: Insurance services platform offering term insurance, health insurance, general insurance, and investment plans
• PaulPay
• PML Holidays
• Paul Money

Products and services

• Loan Against Property (LAP) Secured loans against residential or commercial property as collateral for self-employed professionals, traders, real estate builders, salaried individuals, and other retail borrowers, offering amounts from ₹10 lakhs to ₹5 crores at rates starting from 11% p.a. with tenure up to 12 years and high LTV of up to 75%, with property remaining with the owner during the loan tenure.
• NBFC Finance Loans provided to other NBFCs to strengthen their lending capacity and expand customer access to financial services, targeting partner NBFCs alongside the company's own retail lending book.
• Coverpay Insurance Insurance comparison and purchase platform covering motor, health, home, term, and travel insurance, with distribution supported by Point of Sale Persons (PoSP) agents who can be onboarded with online training and instant policy issuance, and partnerships with insurers such as Care Health Insurance.
• PaulPay Prepaid Card Prepaid card service enabling digital cashless transactions for shopping, e-commerce, bill payments, and recharges, managed through a mobile app on iOS and Android, with co-brand options such as gift cards, insurance cards, incentive cards, and payroll cards for partner businesses.
• PML Holidays Travel Services Travel services offering customized vacations, boutique holidays, and world tours within customer budgets, including affordable packages, homestays, cab services, and travel insurance for individual vacationers and small groups.
• Money Transfer Services Domestic and international money transfer services enabling customers to receive money in minutes from anywhere around the world, distributed through physical counters and the Paul Money agent network.
• Paul Money Agent Program Authorized money transfer agent program enabling individuals to become agents with zero investment and offer domestic money transfer, mobile recharge, and bill payment services to end customers, providing a low-cost business opportunity for small entrepreneurs.

Quantifiable outcome

• Loan sanction within minutes for gold loans
• +1 more outcomes

Named customers6 records

Segments5 records

Ideal customer profiles8 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature2 records

Partnerships

Two partnerships are on record, tiered core.

• Care Health InsurancecoreStrategic or Co-development Partner · 1 February 2023Paul Merchants has partnered with Care Health Insurance to distribute health and general insurance products through the Coverpay platform. This partnership enables Paul Merchants to offer a wide range of insurance products including motor, health, term, home, and travel insurance to its customer base.
• Sesame Software (Speridian Company)coreTechnology or Integration · 29 September 2022Paul Merchants Finance implemented a new Core Banking System from Sesame Software, a Speridian company. This technology partnership modernized the company's banking infrastructure to support growth and operational efficiency.

Scale indicators3 records

Recent moves6 records

Expansion highlights6 records

Broad incumbents

• LIC Housing Finance: Large Indian housing-focused lender with LAP as a meaningful product line; broad incumbent benchmark for secured property-backed lending at scale.
• SBI Cards and Payment Services: India's largest credit card issuer and a relevant broad incumbent for the prepaid/payment card space where Paul Merchants competes with its PaulPay product.
• Bajaj Finance: India's largest diversified NBFC with deep pan-India branch and digital distribution across consumer lending, SME loans, and payments; a broad incumbent benchmark for product breadth and scale rather than a niche specialist.
• Aditya Birla Capital: Diversified Indian financial services group spanning lending, insurance distribution, payments and money management; broad incumbent benchmark for the multi-vertical, cross-sell-driven NBFC and distribution model.

Direct peers

• Manappuram Finance: Diversified Indian NBFC with gold loans as a core vertical alongside microfinance and housing finance; comparable business mix to Paul Merchants' combination of gold loans, LAP and other lending products.
• Shriram Finance: Indian NBFC focused on LAP, commercial vehicle finance and small business lending; comparable customer profile (self-employed, traders, small businesses) to Paul Merchants' LAP target segments.
• Muthoot Finance: India's largest gold loan NBFC and a natural direct comparable given Paul Merchants' gold loan expansion plan across thousands of branches; both serve retail and small business borrowers with secured, fast-disbursement lending.
• Cholamandalam Investment and Finance Company: Leading Indian NBFC with a strong LAP and vehicle finance franchise serving SMEs and self-employed professionals — directly comparable to Paul Merchants' LAP-focused SAMRIDDHI and SAFAL schemes.
• IIFL Finance: Indian NBFC offering LAP, gold loans and a diversified financial services platform, including distribution businesses; closely comparable to Paul Merchants' multi-vertical NBFC model.

Emerging players

• One97 Communications (Paytm): Indian digital payments and financial services platform with a prepaid wallet and lending partnerships; relevant comparable for Paul Merchants' PaulPay prepaid card and adjacent financial services ambitions.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights7 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Profiles3 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Paul Merchants Finance