Paytm expands credit distribution business to enhance focus on higher ticket loans for consumers and merchants in partnership with banks and NBFCs

byPriya KumariLast Updated: December 7, 2023

We have shared an update and outlook on our loan distribution business. We have decided to further expand our business to offer higher ticket personal and merchant loans, which would be targeted at lower risk and high credit worthy customers, in partnership with large banks and NBFCs.

Given the strong portfolio performance and widespread acceptance of loan distribution, we had started in this direction last quarter and are seeing encouraging early trends. 

On the back of recent macro development and regulatory guidance, in consultation with lending partners, in line with our continued focus on driving a healthy portfolio, we have recalibrated the portfolio origination of less than ₹50,000, which is prominently the postpaid loan product and will now be a smaller part of our loan distribution business going forward.

Merchant loans, which are given to MSME as business loans, will continue to be a focus for us. As these loans are given for business purposes to small merchants, they don’t get impacted by the recent regulatory guidance.

“As the lending distribution business is maturing, we see newer opportunities of expansion to offer high-value personal and merchant loans. We will continue to focus on originating the high portfolio quality for our lending partners, along with strict adherence to risk and compliance. We have seen great scale and acceptance for our loan distribution business, so we believe this expansion will further aid us to grow the business.”

Paytm Spokesperson said

We continue to add banks and NBFCs as our lending partners for our loan distribution business.

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