Paytm Boosts Credit Services offers Larger Loans to Consumers and Merchants
By siliconindia | Thursday, December 7, 2023
Paytm, a prominent mobile payments and financial services distribution firm in India, announced its plans to broaden its credit distribution operations. Through collaborations with major banks and Non-Banking Financial Companies (NBFCs), the company aims to provide larger personal and merchant loans to customers with lower risk and high creditworthiness. Paytm observed promising initial results in the last quarter, with widespread acceptance of its loan distribution services and a robust performance in its portfolio.
The spokesperson of Paytm said, "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”.
Recently, macro development and regulatory guidance and in consultation with lending partners, the company kept its focus on driving a healthy portfolio and has further recalibrated the portfolio origination of less than Rs 50,000 majorly the postpaid loan product which will now be a smaller part of its loan distribution business from the way ahead.
Paytm is said to be persistently concentrating on providing business loans to micro, small, and medium enterprises (MSMEs) as merchant loans. These loans, intended to assist small merchants in their business activities, reportedly remain unaffected by recent regulatory guidance. The company has affirmed its commitment to expanding its network of lending partners by adding more banks and non-banking financial companies (NBFCs) for its loan distribution business.
Read More News :