Paytm, India’s leading digital financial services platform has launched instant personal loans on its platform to facilitate public access to credit services. It was founded in 2000 by Vijay Shekhar Sharma, who is currently the MD and CEO of the company.
Paytm has digitized the entire process for loan application and disbursal with no physical documentation requirement. This service proposition is built on Paytm’s cutting-edge tech platform which enables banks and NBFCs to process loans end to end in less than 2 minutes. It comes with a flexible repayment tenure of 18-36 months and EMI is determined accordingly. The eligible customers can avail of the service through the ‘Personal Loan’ tab under the Financial Services section and can manage their loan account directly from their Paytm app.
Here is how to get the loan through Paytm in 5 simple steps:
1. Tap on the “Business Loan” icon on the Paytm for Business App home screen & check the offer available for you. You can also increase or decrease the loan amount as per your requirement.
2. Once you choose the amount, you will be able to see details like loan amount, amount to be disbursed, total payable, daily installment, tenure & more
3. Confirm your details, click on the check box & tap on “Get Started” to proceed. You can also give your consent to get your KYC details from the CKYC to complete your loan application quickly.
4. On the next screen, you can confirm or fill in details like your PAN card data, date of birth & E-mail address. Once done, you can proceed with offer confirmation. Once PAN details are verified, your credit score will be checked & KYC details will be verified.
5. After submitting your loan application, the loan amount will be disbursed in your Bank A/c. Please ensure that before the final submission all details are correct.
The company shared in its FY22 Q3 report that the number of merchant loans disbursed on the platform increased by 38% YoY, while the value of merchant loans increased by 128% year-on-year, with more than 25% of loans disbursed to new borrowers.
The average ticket size continues to increase with scale, now at ₹ 120,000-140,000 with an average tenure of 12-14 months. With 25% of merchants borrowing more than once, recurring loans have seen a healthy uptake.
Recently, the company has expanded its Paytm postpaid service to use a larger set of payments such as payments to neighborhood groceries and popular retail destinations. In addition, it has expanded to include various bill payment facilities available on Paytm, shopping at Paytm Mall, and online payments on internet apps like Domino’s, Tata Sky, Pepperfry, HungerBox, Patanjali, and Spencer’s.