India’s digital financial services platform Paytm has launched new Instant Personal Loans on its platform to facilitate access to credit services to its one million customers. The service, which is active 24×7, for 365 days a year, allows users to get a loan in less than two minutes. The service can also be availed on public holidays and weekends, Paytm said during the announcement. “Paytm is the technology & distribution partner for non-banking financial companies (NBFCs) and would help them expand the reach and adoption of loan services to salaried individuals, small business owners, and professionals,” Paytm said during the launch.
The loans in Paytm’s Instant Personal Loans initiative would be processed and disbursed by NBFCs and banks. This, according to the company, 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 digitized the entire process for loan application and disbursal with no physical documentation required. This service proposition is built on Paytm’s tech platform that enables banks and NBFCs to process loans end to end in less than two minutes. Under the new Instant Personal Loan scheme, Paytm will offer instant loans of up to Rs 2 lakhs to salaried individuals, small business owners, and professionals.
Bhavesh Gupta, the 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 fulfil dreams and ambitions. We aim to become a growth enabler for India’s aspiring youth and young professionals to become self-reliant. We will continue to innovate and digitize as many services that help in bringing ‘new to credit’ users into the formal economy.”Further, Paytm said that its loan service comes with a flexible repayment tenure of 18-36 months, and EMI is determined according to the tenure. 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 the 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 one million users by fiscal year-end to avail the platform’s personal loan services.