Poonawalla Fincorp Limited Unleashes AI-Based Underwriting System to Redefine Lending Practices

Poonawalla Fincorp Limited, a prominent player under the Cyrus Poonawalla Group, has introduced a next-gen AI-driven underwriting system, aimed at modernizing how loans are evaluated and approved. This innovative technology, built in partnership with IIT Bombay, combines artificial intelligence with professional judgment to ensure faster, smarter, and more reliable lending decisions.

A Blend of AI Technology and Credit Expertise

The newly unveiled platform utilizes cutting-edge tools such as Large Language Models and Machine Learning to streamline credit decision-making. What sets it apart is its hybrid structure—while the system runs on intelligent automation, human experts continue to provide oversight for accuracy and compliance. The company forecasts a 40% rise in credit team efficiency through this advancement.

Poonawalla Fincorp CEO Arvind Kapil noted, “We believe in the transformative power of AI in financial services. This launch represents our continuous drive to harness technology for real impact while preserving human judgment in critical decisions.”

Bridging Academia and Real-World Lending

Poonawalla Fincorp Limited’s collaboration with IIT Bombay has proven to be a highly productive partnership. The venture underscores the value of connecting academic research with business applications. Dr. Pushpak Bhattacharyya of IIT Bombay emphasized that this initiative shows how educational institutions can contribute meaningfully to solving complex industry issues through innovative tech applications.

The collaboration reflects a joint ambition to push boundaries and reshape lending through data-driven tools and collaborative expertise.

Evolution Toward Intelligent Automation

Looking ahead, the current system is set to become even more sophisticated. Poonawalla Fincorp Limited plans to evolve the platform into a self-learning model using deep learning frameworks. The aim is to enable continuous optimization of the system through autonomous learning, resulting in enhanced credit accuracy, faster turnaround times, and reduced operational effort.

This development will further support the company’s long-term goal of delivering consistent, data-backed, and customer-friendly loan approvals.

Market Support and Expanding Reach

Following the announcement, shares of Poonawalla Fincorp Limited climbed to ₹349, rising by ₹14.20 or 4.24%, showing strong investor faith in the company's tech-forward approach. With operations spread across 18 Indian states and 2 Union Territories, the firm is steadily growing its national footprint.

As of December 31, 2024, the company recorded an impressive Asset Under Management (AUM) figure of ₹30,984 crore. The growth reflects its strategic focus on customer satisfaction and operational agility through digital processes.

A Diversified Portfolio of Loan Solutions

Poonawalla Fincorp Limited’s extensive lineup of loan products caters to a wide range of individual and business needs. These include:

Personal Financing – Tailored lending options for personal expenses and emergencies.
Used Vehicle Loans – Loans for purchasing pre-owned cars with quick approvals.
Consumer Durable Loans – Credit support for buying gadgets, electronics, and home appliances.
Loans for Businesses – Financial backing for MSMEs to expand or manage operations.
Professional Lending – Dedicated loans for self-employed professionals in various sectors.
Property-Backed Loans – Unlocking funds through residential or commercial property.
Medical Equipment Loans – Supporting the medical community with asset financing.
Commercial Vehicle Loans – Recently added to the portfolio to serve logistics and mobility segments.

All offerings are powered by digital processes, aiming for paperless documentation, minimal approval time, and user-friendly interfaces.

Vision and Leadership for the Future

Under the strategic guidance of the Poonawalla Fincorp CEO, the organization is firmly committed to innovation, scalability, and customer-first solutions. The focus is on evolving into a fully tech-enabled NBFC that operates with agility, transparency, and long-term sustainability.

With this AI-powered system, the company is not just keeping pace with industry trends—it’s setting a new benchmark for responsible and rapid lending in India.

Conclusion

The AI underwriting solution launched by Poonawalla Fincorp Limited, in collaboration with IIT Bombay, is a bold step toward redefining credit processes. Coupled with a diverse loan portfolio and visionary leadership from the Poonawalla Fincorp CEO, the company is well-positioned to lead the digital transformation in India’s financial services sector. By aligning innovation with customer needs, Poonawalla Fincorp Limited continues to shape the future of smart and inclusive lending.