Paytm To Offer Mini Loans Ranging From Rs 250 To 1000
- ByStartupStory | July 5, 2021
IPo bound Digital Payment company Paytm to offer mini loans which can range from Rs 250 to Rs 1000 as a part of its “buy now pay later” initiative,and according to statistics, over a fourth of its users are eligible for this offer. Paytm said it will expand the market for institutional credit as it would be available to those who have otherwise not availed of such finance. Paytm CEo Bhavesh Gupta said that the company can now expand credit as it had in view the range of customers in all forms of payment – online, offline, payment as a merchant. “This gives us an edge over others foraying into ‘buy now, pay later’ products and we can activate a large number of customers and allow them to use the product across a large number of merchants,” he said. The product which Paytm refers to as postpaid mini is about to be rolled out in partnership with Aditya Birla Finance. Paytm has applied for its short finance bank licence, and as soon as they receive the licence they will be able to start offering these mini loans.
Paytm had recently announced its plan for IPO as well which would include fresh issue and share sale of existing investors and customers, and it is expected to raise Rs 12000 crore through the new shares. Payrtm already offers instant credit under paytm Postpaid to up to about Rs 60,000 to creditworthy customers. Paytm Mini would aim at those users who find shortage of money in their regular work like paying for fuel, electricity and other essentials. There will be no annual fee, or activation charges just an initial minimal amount. The postpaid mini can be availed at first and the proceeds utilised for shopping or customers can switch to postpaid as a payment option at the time of shopping. He said, “ We want to help new-to-credit customers to start their credit journey and develop a financial discipline. Through postpaid we are also making sincere attempts to help drive consumption in the economy.”
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