Local digital financial services platform in India Paytm today announced its partnership with Suryoday Small Finance Bank to enable MSMEs to benefit from instant digital loans. The company advances the cause of financial inclusion by offering instant microloans to businesses that cannot access the financial services of traditional banking players. The company, through this partnership, aims to disburse loans to over 1 lakh of small businesses over the next 12-18 months.
This is the first loan partnership for Paytm with a small financing bank to help traders obtain loans seamlessly.
Paytm has made the entire loan delivery process completely digital and hassle-free so merchants can transact with the bank and take out loans with the touch of a phone. Merchants will not have to go to the bank branch as the entire journey from request to approval will be done on the Paytm app itself. The company said the underwriting would be done according to a credit policy agreed to by the bank within seconds, and after approval the customer would be disbursed by Suryoday. The systems are designed for real-time approval and disbursement, ensuring a superior customer experience.
“As a small financial bank, our focus is on providing products with great customer experience, this merger will help us provide click-to-click credit for small business owners and ensure they have access when they want it. Our partnership with Paytm on the lending side is API-based, which will bring a secure, smart and connected digital experience, ”said Baskar Babu, Managing Director and CEO of Suryoday Small Finance Bank.
“We are pleased to welcome Suryoday Small Finance Bank as a partner to enable MSMEs to benefit from instant loans. Our partnership aims to democratize access to loans for small businesses and traders and to promote financial inclusion. With our instant unsecured loans, we aim to give MSMEs sufficient liquidity to grow and develop, ”says Bhavesh Gupta, CEO of Paytm Lending.
The company said the entire loan application process was completely transparent. Merchants have to log into the Paytm for Business app, opt for the loan offer, and go through a very short and straightforward process from the bank. Once the process is completed, the loan amount is disbursed directly to their bank accounts.
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