BimaPay Eyes 30–40% Volume from ULIPs, Gears Up for Digital Loan Launch

BimaPay Finsure is getting ready to introduce what it calls India’s first fully digital platform for loans against life insurance policies. The company, led by CEO and Co-founder Hanut Mehta, aims to simplify a traditionally offline and paperwork-heavy process by offering a seamless, tech-driven alternative.

Aiming to Disrupt a Paper-Heavy Process

Taking a loan against a life insurance policy is not new—but the process is often tedious, involving multiple documents, delays, and manual verification. BimaPay’s goal is to eliminate these inefficiencies and provide a completely digital experience for customers.

“Once the integration with our insurance partners and the insurance depository is done, we’ll be ready to launch the platform,” Mehta said, highlighting the near-completion of their technical backend. However, he refrained from revealing the names of the insurance partners involved in the integration.

Big Bet on ULIPs Despite Market Volatility

BimaPay is targeting 30–40 percent of its loan volume from ULIPs (Unit Linked Insurance Plans)—a move that reflects confidence in these market-linked instruments despite their recent underperformance.

“ULIP demand has dipped in recent quarters with market corrections. But that’s cyclical,” Mehta explained. He believes the dip is temporary and expects demand to bounce back with market recovery.

Even though ULIPs are considered tricky as collateral due to fluctuating surrender values, BimaPay sees long-term potential in them. “We don’t see this as a permanent trend,” Mehta added, underlining the firm’s strategic focus.

India’s First Digital-Only Loan Against Policy Product

The platform is set to be a first-of-its-kind in India, allowing users to access loans against their life insurance policies without stepping into a branch or submitting piles of paperwork.

The innovation comes at a time when digital lending is gaining traction, and insurers are increasingly open to tech collaborations.