Paytm offers mini-loans from Rs 250 to 1,000

Mumbai: IPO-linked Paytm said it would offer microloans ranging from Rs 250 to Rs 1,000 to app users as part of a ‘buy now, pay later’ loan product and more than a quarter of its clients are eligible according to company criteria. analytic.
Paytm said it would expand the institutional credit market, as it would be available to those who would not otherwise have benefited from such funding. Paytm (loan) CEO Bhavesh Gupta told TOI that the company is now able to extend credit because it has a view of its customers across all online and offline payment platforms and payments as trader. “It gives us an advantage over others who are going into ‘buy now, pay later’ products and we can activate a lot of customers and allow them to use the product with a lot of merchants,” did he declare.
The credit product, which the company describes as mini postpaid, is offered in partnership with Aditya Birla Finance. Paytm has applied for a small finance banking license, and if it gets one, it will be able to offer these loans on its books. The company has announced plans for an IPO, which will include a new issuance and sale of shares by existing investors. He plans to increase Rs 12,000 crore through a new issue of shares.
Paytm already offers instant credit up to Rs 60,000 under Paytm postpaid to creditworthy customers. Postpaid mini is for those who find themselves strapped for funds to make regular payments like fuel, electricity or other utilities or stores. There is no annual fee or activation fee, only a minimal convenience fee, Gupta said.
Mini postpaid can be used initially and the product used for purchases or customers can switch to postpaid as a payment option at the time of purchase. “We want to help new credit customers start their credit journey and develop financial discipline. Through postpaid, we are also sincerely trying to help stimulate consumption in the economy, ”he said.

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Joan Ferguson

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