Paytm aims to disburse ₹1,000 crore in loans to MSMEs by March 211 min read . Updated: 09 Nov 2020, 10:15 AM IST
- Paytm plans to offer loans on low-interest rate and daily repayment flexibility
- Collateral free loans are provided in partnership with leading lenders
Digital financial services platform Paytm plans to provide collateral-free loans of up to ₹500,000 at a low-interest rate and unique daily EMI product customized for micro-merchants.
The company continues to offer collateral-free loans under the 'Merchant Lending Program' in Paytm for Business app. Its algorithm determines the credit-worthiness of the merchant based on his daily transactions and arrives at a pre-qualified loan offering. Loan repayment is primarily collected from the merchant’s daily settlement with Paytm and there are no prepayment charges on these loans. In the last financial year, Paytm has processed loans worth ₹550 crore benefiting over a lakh merchant partner.
Paytm has digitised the entire process starting from the loan application, approval to disbursal with no additional documents required in partnership with NBFCs and banks.
Paytm had recently launched Paytm All-in-One Android POS device that enabled over 2 lakh MSMEs to accept all payment modes, including Paytm Wallet, all UPI based apps, Debit & Credit Cards and ‘Cash’. The 'Paytm for Business' app has also become growth enablers for kirana stores as it helps them to track payments instantly, navigate through the past collections and track settlements made to their preferred bank accounts. This app is available in 10 regional languages and is efficiently used by retailers in small cities & towns.
Bhavesh Gupta, CEO - Paytm Lending said, “With our collateral-free instant loans, we are trying to help kirana stores & other small business owners who have been left behind by the traditional banking sector and do not have easy access to loans and credit. Going forward, we will especially focus on EDC merchants and provide higher loan amount based on their EDC transactions."
Paytm is on a mission to provide instant credit for those who do not have access to loans from the traditional banking sector due to lack of collateral or credit score.