Indian digital payments firm Paytm is looking to drive financial inclusion in the country by launching Instant Personal Loans on its platform.
The service can be availed by salaried individuals, business owners as well as professionals, enabling them to get a loan in below two minutes.
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The aim is to particularly serve ‘new to credit’ consumers or those with no credit history, with the loan amount capped at INR0.2m.
For the service, the payments firm has collaborated with banks and NBFCs, who will process the loans.
The firm has already trialled the service with more than 400 selected customers in the beta phase. The target is to extend credit to a million users by the fiscal year end.
Available round-the-clock for 365 days including public holidays and weekends, the service will include a repayment tenure of 18-36 months.
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By GlobalDataThe EMI will be based on the tenure and customers can manage their loan account on the Paytm app.
Commenting on the development, Paytm Lending CEO Bhavesh Gupta stated: “We aim to make Instant Personal Loans accessible to the self-employed, new to credit individuals and young professionals who need short to medium term personal loans to manage urgent expenses so that lack of resources does not come in their way to fulfil dreams and ambitions.
“Our aim is to become a growth enabler for India’s aspiring youth and young professionals to help them become self-reliant. We will continue to innovate and digitise as many services that help in bringing ‘new to credit’ users into the formal economy.”
Recently, Paytm also announced plans to enter India’s credit card market.
The firm plans to partner with various card issuers to roll out as many as two million co-branded credit cards in the next 12-18 months.
