BackPaytm partners with Piramal Finance to offer loans. How to avail
Paytm said that its partnership with Piramal Finance will be expanded soon to include personal loans.
PremiumPaytm has today announced a partnership with Piramal Capital & Housing Finance for expanding distribution of merchant loans to the small cities and towns of India. Piramal Capital & Housing Finance is a subsidiary of Piramal Enterprises Limited and has over 300 branches across India. Merchants will be able to avail loans of up to ₹10 lakh with a tenure of 6-24 months. Paytm said that its partnership with Piramal Finance will be expanded soon to include personal loans.
“Paytm has acquired a large number of merchants from big and small cities across the country, amassing a large base which Piramal Finance plans to leverage and bring ease of credit to small business owners through data-driven underwriting along with credit sanctions based on business income. Additionally, this partnership will be expanded soon to include personal loans, where Piramal Finance brings its deep understanding of risk and customer segment," One 97 Communications that owns the brand Paytm, said in a statement.
Piramal Finance, which has 309 active branches, is an on expansion drive and is targeting a presence in 1000 towns and cities. Piramal Finance is also working towards converting all erstwhile DHFL branches into multi-product branches. Last year, Piramal Finance had acquired DHFL.
Commenting on the Piramal Finance partnership, Bhavesh Gupta, CEO of Lending and Head of payments at Paytm, said, "We continue to see rapid growth across all our lending products, where we empower MSMEs from smaller cities and towns with access to digital credit. The success and scale of our lending products gives us the confidence to expand and further boost our credit offerings. Our partnership with Piramal Finance is another step in that direction, where we will together bring more merchants into the formal credit economy."
How merchants can avail loans on the Paytm For Business App
-Tap on the "Business Loan" icon on the Paytm for Business App home screen and enter the desired loan amount
-Check details like loan amount, amount to be disbursed, total payable, daily installment, tenure
-Confirm details and click on the check box & tap on 'Get Started' to process.
-Merchants can give consent to give KYC details from the CKYC to complete the
loan application process quickly
-On the next screen, confirm personal details - PAN, date of birth, email address.
-After this, credit score will be checked for loan eligibility and KYC details will be verified.
-One the application is verified successfully, the loan amount will be disbursed
instantly in the selected bank account of the merchant.
Paytm is seeing a strong growth across all its lending verticals (Paytm Postpaid,Personal Loans and Merchants Loans) that are offered on its platform in partnership with lenders. In Q1 FY23, Paytm disbursed 8.5 million loans, marking a Y-o-Y growth of 492%. In terms of value, the company disbursed loans worth ₹5,554 crore.
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