We have partnered with Piramal Capital & Housing Finance Ltd to expand distribution of merchant loans to the small cities and towns of India. Piramal Capital & Housing Finance Ltd. is a wholly-owned subsidiary of Piramal Enterprises Limited and an established financial services company in India. Through this partnership, we will expand our loan distribution business, supported by Piramal Finance’s wide network of over 300 branches across India. This will enable us to further drive financial inclusion by bringing access-to-credit to small businesses and retailers.
We have acquired a large number of merchants from big and small cities across the country, amassing a large base which Piramal Finance plans to leverage and bring ease of credit to small business owners through data-driven underwriting along with credit sanctions based on business income. Through the partnership, we will be expanding soon to include personal loans, where Piramal Finance will bring its deep understanding of risk and customer segment.
Our lending business has seen massive adoption and this partnership will further bring new-to-credit merchant partners to the platform. This will also allow them to seamlessly avail loans of up to ₹10 lakh with a tenure of 6-24 months and meet the capital requirements for their business. To drive convenience, we will enable a completely digital onboarding process with minimum documentation.
The wide acceptance of merchant loans on our platform is reflected through the high volume of repeat loans, with over 50% of the total value of loans disbursed to merchants, who had taken a loan earlier. This demonstrates the stickiness of the merchant on our platform. Moreover, we have also seen an increase in the average ticket size of the loans.
We have created a strong foothold in the digital lending market in India. And we continue to witness rapid growth across all our lending verticals – Paytm Postpaid, Personal Loans and Merchants Loans – that are offered on our platform in partnership with marquee lenders. In July 2022, we have disbursed 2.9 million loans, marking a Y-o-Y growth of 296%. In terms of value, we have disbursed loans worth Rs 2,090 crore, registering a 512% Y-o-Y growth.
How Merchants Can Avail Loans on Paytm For Business App
- Tap on the “Business Loan” icon on Paytm for Business App home screen and enter the desired loan amount
- Check details like loan amount, amount to be disbursed, total payable, daily installment, tenure & more
- Confirm details and click on the check box & tap on ‘Get Started’ to process. Merchants can give consent to give KYC details from the CKYC to complete the loan application process quickly
- On the next screen, confirm personal details – PAN, date of birth, email address. After this, credit score will be checked for loan eligibility and KYC details will be verified.
- One the application is verified successfully, the loan amount will be disbursed instantly in the selected bank account of the merchant.