Digital financial services platform Paytm has introduced instant personal loans on its platform to facilitate access to credit services to the masses. The service can be availed 24×7, round the year even on public holidays and weekends.
Paytm is the technology and distribution partner for NBFCs and would help them expand the reach and adoption of loan services to salaried individuals, small business owners and professionals. The loans would be processed and disbursed by NBFCs and banks. This move will bring ‘new to credit’ customers into the ambit of the formal financial market, and will also empower individuals from small cities and towns who do not have access to traditional banking institutions.
Paytm has digitised the entire process for loan application and disbursal with no physical documentation requirement. This unique service proposition is built on Paytm’s cutting-edge tech platform which enables banks and NBFCs to process loans end to end in less than 2 minutes. It comes with a flexible repayment tenure of 18-36 months and EMI is determined accordingly. The eligible customers can avail of the service through the ‘Personal Loan’ tab under the Financial Services section and can manage their loan account directly from their Paytm app.
The company has partnered with various NBFCs and banks to facilitate this service. During the beta phase, Paytm disbursed personal loans to over 400 selected customers. The company is now aiming for over 1 million users by fiscal year-end to avail the personal loan services from the platform.
Bhavesh Gupta, CEO – Paytm Lending, said, “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 fulfill 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, the company has expanded its Paytm Postpaid service to a large set of use-cases such as payments at neighbourhood Kirana and at popular retail destinations. Additionally, it has also been extended to various bill payments facilities available on Paytm, shopping on Paytm Mall, and online payments at internet apps such as Domino’s, Tata Sky, Pepperfry, HungerBox, Patanjali, Spencer’s among others.