Collateral free loans for MSMEs: Paytm expands (double) loan disbursements from Rs 550 crore to Rs 1,000 crore
The Company resumes offering collateral-free loans under the 'Merchant Lending Program' for Business app. Its algorithm determines the credit-worthiness of the merchant based on his/her daily transactions and arrives at a pre-qualified loan offering.
On Monday, Paytm announced to double its collateral-free loan disbursements for the MSMEs from Rs 550 crore to Rs 1,000 crore by March 2021. At a low-interest rate and unique daily EMI product customized for micro-merchants, the company expanded loans of up to Rs 500,000.
"Going forward, we will especially focus on EDC merchants and provide higher loan amounts based on their EDC transactions," Gupta said. al-free instant loans, we are trying to help kirana stores and other small business owners who have been left behind by the traditional banking sector and do not have easy access to loans and credit," said Bhavesh Gupta, CEO, Paytm said. "Going forward, we will especially focus on electronic data capture merchants and provide higher loan amount based on their EDC transactions," he added.
The company resumes offering collateral-free loans under the 'Merchant Lending Program' for Business app. Its algorithm determines the credit-worthiness of the merchant based on his/her daily transactions and arrives at a pre-qualified loan offering.
The company informed that Paytm All-in-One Android POS device, which was recently launched, allows over 2 lakh MSMEs to accept all payment modes, including Paytm Wallet, all UPI-based apps, Debit & Credit Cards and ‘Cash’. 'Paytm for Business' app for the Kirana stores helps track payments navigate through past collections and settlements made to their bank accounts. The app is available in 10 regional languages and is proving to be very helpful
From the loan application, it has digitized the entire process with no additional documents required in partnership with NBFCs and banks. The company said that Paytm All-in-One Android POS device, which was recently launched, allows over 2 lakh MSMEs to accept all payment modes, including Paytm Wallet, all UPI-based apps, Debit & Credit Cards and ‘Cash’. 'Paytm for Business' app for the Kirana stores helps track payments navigate through past collections and settlements made to their bank accounts. The app is available in 10 regional languages and is proving to be very helpful.
