Paytm partners with Piramal Finance to offer loans to merchants and small businesses

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Biznextindia : One 97 Communications Limited that owns the brand Paytm, India’s leading digital payments and financial services company and the pioneer of QR and mobile payments, on Wednesday announced a partnership with Piramal Capital & Housing Finance limited to expand distribution of merchant loans to the small cities and towns of India.

Piramal Capital & Housing Finance Ltd. is a wholly-owned subsidiary of Piramal Enterprises Limited and an established financial services company in India. This partnership will expand Paytm’s loan distribution business, supported by Piramal Finance’s wide network of over 300 branches across India. It will also help drive financial inclusion by bringing access-to­credit to small businesses and retailers. Paytm has acquired a large number of merchants from big and small cities across the country, amassing a large base which Piramal Finance plans to leverage and bring ease of credit to small business owners through data-driven underwriting along with credit sanctions based on business income.

“We continue to see rapid growth across all our lending products, where we empower MSMEs from smaller cities and towns with access to digital credit. The success and scale of our lending products gives us the confidence to expand and further boost our credit offerings. Our partnership with Piramal Finance is another step in that direction, where we will together bring more merchants into the formal credit economy” Bhavesh Gupta, CEO of Lending and Head of payments at Paytm, said. 

Additionally, this partnership will be expanded soon to include personal loans, where Piramal Finance brings its deep understanding of risk and customer segment. Paytm’s lending business has seen massive adoption and this partnership will further bring new-to-credit merchant partners to the platform. It will allow them to seamlessly avail loans and meet the capital requirements for their business. Merchant partners will be able to avail loans of up to Rs.10 lakh with a tenure of 6-24 months. To drive convenience, Paytm will enable a completely digital onboarding process with minimum documentation. With 309 active branches, Piramal Finance continues to invest in its expansion plans to be present in 1000 towns and cities in the country over the near term. Piramal Finance has built a new-age, innovative, multi-product retail lending platform and through its phygital strategy, the company aims to serve Bharat at scale. The company has leveraged Al and Machine Learning tools to offer personalized experiences for individuals and businesses, thereby transforming the way lending works for unserved consumers.

 

 

How merchants can avail loans on the Paytm For Business App:

  • Tap on the “Business Loan” icon on the Paytm for Business App home screen and enter the desired loan amount
  • Check details like loan amount, amount to be disbursed, total payable, daily installment, tenure & more
  • Confirm details and click on the check box & tap on ‘Get Started’ to process. Merchants can give consent to give KYC details from the CKYC to complete the loan application process quickly
  • On the next screen, confirm personal details – PAN, date of birth, email address. After this, credit score will be checked for loan eligibility and KYC details will be verified.
  • One the application is verified successfully, the loan amount will be disbursed instantly in the selected bank account of the merchant.

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