Are You Eligible for Merchant Loan? Let’s Find Out

byDilip PrasadLast Updated: April 25, 2024
Eligible for Merchant Loan

Every business needs sufficient working capital to ensure smooth operations. Typically, small businesses turn to traditional avenues like banks and NBFCs when seeking financial assistance. Opting for a bank loan or exploring government MSME loan schemes are common initial choices. In contrast, Merchant loan from Paytm’s Lending Partners provides a streamlined alternative for small-scale business owners to access loans easily. Paytm merchants can apply for a Merchant Loan online with the opportunity to secure up to ₹10 lakh.

Paytm Merchant Loan Eligibility Criteria

Key eligibility criteria for Paytm merchant loans from Paytm’s lending partners

  • Indian Residency and Age Requirement: Applicants must be Indian residents, at least 18 years old, to qualify for a merchant loan.
  • Paytm Merchant account: Register yourself as a Paytm Merchant on Paytm for Business app. This ensures the legitimacy of the business seeking the loan.
  • Transaction Balance on Paytm: Maintaining a consistent and satisfactory transaction volume on Paytm QR is crucial. Applicants with a good balance over a month-to-month basis increase their chances of loan approval.
  • Active Collections: The number of transactions accepted via Paytm QR play an important role. It indicates the merchant’s financial stability.
  • Customer Base Growth: The chances of getting eligible are higher for applicants who accept payments from more customers. This means merchants should accept payment through Paytm QR as much as possible.  
  • Credit History: A positive credit history and good CIBIL score increase trust and increase chances of loan approval.
  • Activity on Paytm App: Using the Paytm app for different services like bill payments, recharges, movie ticket booking, travel etc works as a positive indicator and improves chances of loan approval.

Advantages of Paytm Merchant Loan

The Paytm merchant loan offers a host of advantages that cater to diverse financial needs without the burden of collateral. Here are the main benefits:

  • Collateral-Free: Applicants can access funds without providing any collateral, which makes it easy to avail funds. 
  • Versatile Usage: The loan can be used for many financial needs. For example, merchants can use it to renovate their shops, buy supplies, pay rent, pay salaries etc.
  • Instant Approval: The approval process is streamlined, offering instant disbursal. Merchants can get a loan in just 1 hour. 
  • Flexible Repayment Terms: Merchants can pay in Easy Daily Instalments so that there’s no burden of huge monthly installments on them and the loan is paid on time easily.
  • Enhanced Loan Limits: Merchants who repay their loans timely without any defaults can become eligible for higher loan amounts in the future.


Is there interest on Merchant loan?

Yes. Like any other loans, they have an associated interest rate applied to the borrowed amount.

Is there a specific CIBIL Score requirement for Merchant loan?

The minimum CIBIL Score needed for an instant business loan from Paytm depends on the particular loan scheme and Paytm’s Lending partner’s credit policies. You can visit the Paytm for Business website or contact customer support ( Call at 0120-4440440 or write to us as [email protected]) for accurate and up-to-date information for the exact details on the requirements for your chosen loan scheme.

Do I have to provide collateral for a Merchant loan?

No, there is no requirement for collateral when applying for a Merchant loan by Paytm’s Lending partners.

Are there any charges for closing a Merchant loan early?

No, Paytm does not impose any foreclosure charges on merchant loans. You have the flexibility to repay your loan without incurring any additional costs.

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