India’s home-grown digital financial services platform Paytm is aiming to disburse loans to over 1 lakh MSMEs and small businesses in the next 12 – 18 months in partnership with Suryoday Small Finance Bank.
This is the first lending partnership for Paytm with a small finance bank to help merchants get loans seamlessly. The idea behind this is — financial inclusion by offering instant microloans to businesses that are unable to access financial services from traditional banking players.
Paytm has made the entire process of availing loans completely digital and hassle-free so that merchants can transact with the bank and take loans with just a tap on the phone. Merchants will not have to visit the bank branch as the entire journey from application to approval will be completed on the Paytm app itself. The company said that underwriting will be done as per an agreed credit policy of the bank within seconds and post-approval the customer will be disbursed by Suryoday. The systems are designed for real-time approval and disbursement thereby guaranteeing a superior customer experience.
Baskar Babu, MD & CEO, Suryoday Small Finance Bank said, “As a small finance bank we focus on delivering products with great customer experience, this tie-up will help us deliver credit on click for small business owners and ensure access to it whenever they want. Our partnership with Paytm on the lending side is API driven which will bring in a secure, intelligent, and connected digital experience.”
Bhavesh Gupta, CEO – Paytm Lending said, “We are happy to welcome Suryoday Small Finance Bank as our partner to empower MSMEs with instant loans. Our partnership aims towards democratizing access to loans for small businesses, merchants & promote financial inclusion. With our collateral-free instant loans, we aim to give MSMEs adequate liquidity to grow and expand.”
The company said that the entire process of applying for loans is completely seamless. Merchants have to log on to the Paytm for Business app, opt for the loan offer & go through a very short and simple process of the bank. After they complete the process, the loan amount is disbursed directly into their bank accounts.
