In order to offer collateral-free instant loans, the digital payment system provider, Paytm has partnered with scheduled commercial banks and NBFCs.
Paytm Offering Collateral-free Instant Loans
This collaboration will offer collateral-free instant loans of up to Rs 500,000 that too at a low-interest rate.
Besides this, it will also offer a unique daily EMI product which can be customized for small merchants.
Further, these loans can be availed from the ‘Merchant Lending Program’ in the Paytm for Business app.
There is an algorithm that determines the credit-worthiness of the merchant.
The algorithm is based on his daily transactions and offered as a pre-qualified loan offering.
This way it becomes a completely digital loan application process, so there is no need for additional documents.
Coming to loan repayment, it is primarily collected from the merchant’s daily settlement with Paytm and there are no prepayment charges on these loans.
How To Get A Loan Through Paytm ?
1. First of all, tap on the “Business Loan” icon on the Paytm for Business App home screen & check the offer available for you. Here, you can modify the loan amount as per your requirement.
2. After selecting the amount, you will be able to see the details including loan amount, amount to be disbursed, total payable, daily installment, tenure & more.
3. Now, confirm your details and click on the check box & tap on “Get Started” to proceed.
4. Next, you can give your consent to get your KYC details from the CKYC to complete your loan application quickly.
5. On the next page, you can confirm or fill in the information about you such as PAN card data, date of birth & E-mail address.
6. After completion this, you can proceed with offer confirmation.
7. Once your PAN details are verified, your credit score will be checked & KYC details will be verified.
8. After submission of your loan application, the loan amount will be disbursed in your Bank A/c, just ensure that before the final submission all details are correct.
It seems that the number of Merchant Loans disbursed on the platform grew 38% Y-o-Y as Paytm shared in its Q3 FY22 report.
At the same time, the value of Merchant Loans grew 128% Y-o-Y.
Interestingly, more than 25% of loans were disbursed to new credit borrowers.
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