Paytm plans to extend a loan of Rs 1,000 crore to MSMEs by March 2021 to strengthen its hold in the merchant lending business.
Paytm plans to extend a loan of Rs 1,000 crore to Micro Small and Medium Enterprises (MSMEs) by March 2021 to strengthen its hold in the merchant lending business. Paytm will lend to these entrepreneurs who cannot get loans to start employment from regular banks. Paytm provided Rs 550 crore as loan to MSMEs in FY 2019-20. But this year the company has now increased this amount to Rs 1,000 crore. Paytm’s rivals Google Pay (Google Pay) and Phone Pay (PhonePE) have also made strides in the field of merchant lending, which along with several license banks and NBFCs are giving loans to small traders. To counter this, Paytm has increased the loan amount for MSMEs.
Paytm Lending CEO Bhavesh Gupta said the company would offer collateral-free instant loans of up to Rs 5 lakh to small traders and MSMEs at a very low interest rate, without pledging any guarantee. He said that the company will provide collateral-free instant loans to customers very easily on the Paytm Business App under its Merchant Lending Program.
Algorithm will decide, get loan or not
The algorithm of the Paytm Business app will decide which people are eligible to take a loan and who are not. The algorithm of this app decides whether the loanee is capable of repaying the loan or not, based on the settlement the merchant has made on Paytm. In the financial year 2019-20, Paytm gave a loan of Rs 550 crore to more than 1 lakh small traders and MSMEs. Paytm Lending CEO Bhavesh Gupta said that the process from applying for a loan to giving a loan is completely digital and does not require any additional documents.
Paytm launched POS device
Paytm has recently launched its all-in one Android POS device. With this, businessmen and traders will be able to take payments from all UPI based apps, debit cards and credit cards, including various mobile wallets. Two lakh grocery shoppers have adopted digital payment system so far with this device. With this device, they will be able to track the payment and also make a settlement with the bank. This app is available in 10 languages.
