On Tuesday, the Chinese electronics maker Xiaomi announced the Mi Credit – an app-based credit lending service with a limit of up to Rs 1 lakh on personal loans, expanding its financial services portfolio.
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How Did This Happen?
The app will be working as an online marketplace for lenders.
The app-based platform allows it and its partner lending platforms to provide an end-to-end digital experience, including paper-less process to upload documents for know your customer (KYC) process and bank account linking, According to Xiaomi.
It debuts with support from five non-banking financial companies (NBFCs) and fintech firms namely Aditya Birla Finance Limited, Money View, EarlySalary, Zestmoney and CreditVidya.
How To Use Mi Credit Application?
The services provided by Mi Credit all aim to help people get smaller loans completely online.
For doing that, the company has partnered with firms such as Aditya Birla Finance Limited, Money View, EarlySalary, Zestmoney and CreditVidya for the facilitation of the loans.
Xiaomi is mainly known for its affordable handsets and TVs. It has also revealed that it had already disbursed over 28 crores in November 2019 with more than 20% of its customers availing the maximum loan amount of Rs 1 lakh.
What Other Features Mi Credit Application Provide?
Mi Credit has also partnered with Experian to provide credit score report free of cost on the Mi Credit app.
The Mi Credit service is currently available in more than 10 states, covering around 1,500 pin codes, and also the company aims to roll out services across all pin codes by the end of this financial year (March 2020), according to Xiaomi.
Currently, the Mi Credit app is available on Google Play Store, Xiaomi app store and GetApps platform for Android smartphones.
Apart from that, it will come preloaded on the company’s MIUI operating system-powered smartphones.
What Is The Vision Behind Mi Credit App?
Hong Feng said “today, we have over 300 million Mi Fans in our global community and having understood their consumption behavior – it is one of the strengths we aim to leverage to build a stronger Mi Finance business globally. We see a huge opportunity for consumer lending in India with estimations reaching up to $1 trillion dollars in digital lending by 2023, as per a report from BCG. This makes us believe that our Mi Finance business, based on solutions such as Mi Pay and Mi Credit can truly revolutionize the Indian FinTech industry,”. (Reference)
He is co-founder and senior vice-president, Xiaomi Corporation, and chairman and CEO, Xiaomi Finance.
The Mi Credit is the company’s first such app since Xiaomi has launched Mi Pay long back.
The company has announced the launch of this application earlier this year in March, in the company’s financial services portfolio.
While talking about the platform’s security, Xiaomi India Managing Director Manu Kumar Jain said all user data on Mi Credit was stored securely in an encrypted format in India through the company’s partner Amazon Web Services’ cloud infrastructure.