Paytm, India’s leading digital payments and financial services company, is offering collateral-free instant loans of up to Rs 5 lakh to small merchants in collaboration with scheduled commercial banks and NBFCs. The loans are available at a low interest rate and come with a unique daily EMI option, Mint reported.
Merchants can avail loans under the merchant lending programme on the Paytm for Business app. Loans are disbursed after the app determines the merchant’s credit-worthiness based on his daily transaction, using an algorithm.
As the process is completely digitised, no additional documents are required. The merchant can repay the loan through daily settlements with Paytm and no pre-payment charges are levied.
To avail the collateral-free loan, small traders can follow these five simple steps:
Meanwhile, One97 Communications Limited, the parent of the digital payments app, in a filing with the Bombay Stock Exchange (BSE) said it witnessed accelerated growth in its lending business.
In January 2022, the number of loans disbursed through the platform was up 331 percent year-on-year to 1.9 million loans, while the value of loans disbursed grew 334 percent year-on-year to Rs 921 crore.
(Edited by : Shoma Bhattacharjee)