Paytm Venturing Into P2P Lending Niche In India; Aims To Dominate $5 Billion Market With Clix Capital

Indian fintech major Paytm is reportedly all set to join hands with Gurgaon-based SME lending platform Clix Capital. In its almost final stages of meet-ups, Clix Capital will help Paytm to start its peer-to-peer lending business.

Paytm has already registered with the Reserve Bank of India to run its P2P lending platform for providing services to loans through an app or web. The service hasn’t begun yet.

Paytm With Clix Capital for P2P Business

In what is speculated as its final stages of discussions, Paytm and Clix Capital have almost tied hands to work together, where the latter would help Paytm to start its peer-to-peer lending business. They are currently going through the finals details of constructing a strategic plan for the same.

The peer to peer platform will allow borrowers looking for loans and lenders looking forward to offering loans at various interest rates, meet in the digital platform. Paytm here will act as a digital intermediary between borrowers and lenders. While in 2018, Paytm was speculated of seeking a license from the RBI to operate a P2P lending platform, it has now been reported that Paytm has already registered with the RBI to run its P2P lending platform.

How Can P2P Help You?

Generally borrowers who cannot avail loans from other sources, come up to this platform for availing loans. Thus, quite often, lenders in P2P charge higher interest rates.

P2p lending business is quite up in trend in foreign countries but hasn’t quite registered its roots deeply in India. Indian P2P lending market has a set of prominent player as well, like Faircent, LenDenClub, IndiaMoneyMart, Monexo, LoanBaba, CapZest, and i2iFunding.

RBI has placed a cap of Rs 10 lakh on lenders for providing such loans. RBI also mandated a Rs 2 Cr capital requirement for all P2P lending companies to ensure that lending platforms aren’t fraud or run away with the money. The digital lending business is estimated to grow to $1 Tn mark in the next five years.

Paytm was founded in 2010, with an aim to ease the process of digital payments ecosystem across India. It has not only been doing this but also has been  facilitating short-term loans to some merchants on its platform through company’s tie-ups with the Non Banking Financial Company (NBFCs). If this deal pulls off, Paytm is surely expected to grow massively in the business.

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