The maximum credit amount for merchants is Rs 10 lakh, with terms ranging from 6 to 24 months. According to Paytm, personal loans would soon be included in the partnership between the company and Piramal Finance.
“Paytm has 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. Additionally, this partnership will be expanded soon to include personal loans, where Piramal Finance brings its deep understanding of risk and customer segment,” One 97 Communications which owns the brand Paytm, said in a statement.
The company said that the partnership will also help drive financial inclusion by bringing access-tocredit to small businesses and retailers.
“We continue to see rapid growth across all our lending products, where we
MSMEs from smaller cities and towns with access to digital credit. The success and scale of our lending products gives us the confidence to expand and further boost our credit offerings. Our partnership with Piramal Finance is another step in that direction, where we will together bring more merchants into the formal credit economy,” Bhavesh Gupta, CEO of Lending and Head of payments at Paytm, said.
With 309 operating branches, Piramal Finance is expanding with the goal of being present in 1000 towns and cities.
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“We aim to cater to the lending needs of the merchants in the Bharat markets through a variety of products that are relevant to this core segment. Many of these merchants are loyal Paytm customers and this partnership will bolster our proposition through a mix of technology and network of branches located in tier-II and tier-Ill towns. Our ability to underwrite this segment and collect in local markets, coupled with Paytm’s digital access to this base, we believe we can offer compelling lending solutions,” Jairam Sridharan, Managing Director, Piramal Capital & , said.