Digital financial services company Paytm said on Monday that it aims to disburse loans worth Rs 1,000 crore to traders by March.
The company said it will continue to offer collateral-free loans under the “merchant loan program” to users of the Paytm for Business app.
“We are going to enable loans of Rs 1,000 crore to businesses based on the data we have on our 17 million merchants. These loans would help them digitize their business and diversify their operations, improve their efficiency and help them to join the Digital India mission,” Paytm said in a statement.
The company said it aims to disburse targeted loans by March.
Paytm calculates each merchant’s creditworthiness based on daily transaction patterns and then offers them a collateral-free loan in partnership with non-bank finance companies and banks.
“The company today reaffirmed its commitment to the growth of MSMEs by expanding collateral-free loans of up to Rs 5 lakh at a low interest rate and a unique daily EMI product customized for micro-traders,” the statement said. communicated.
Loan repayment is primarily collected from the merchant’s daily settlement with Paytm and there are no prepayment charges on these loans.
Paytm claims to have processed loans worth Rs 550 crore to more than one million merchant partners in the last financial year.
With our instant unsecured loans, we are trying to help kirana stores and other small business owners who have been left behind by the traditional banking sector and do not have easy access to loans and credit,” said Paytm Lending CEO Bhavesh Gupta.
(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)