Digital financial services company Paytm has set a target of disbursing Rs 1,000 crore of debt to shoppers by March next year. The company said on Monday that it would continue to provide unsecured loans to users of its business apps under the ‘Shopkeeper Loan Program’.
Paytm said in a statement, “We will provide a loan of Rs 1,000 crore to the business sector based on the data of our 1.7 crore shopkeepers. Through this loan, shop owners will be able to digitize their businesses and diversify operations. This will improve their efficiency and help them to join Digital India Mission.
The company said it aims to disburse a debt of Rs 1,000 crore by March. Paytm determines the credit worthiness of shopkeepers on the basis of daily transactions and then provides unsecured loans in partnership with non-banking financial companies (NBFCs) and banks.
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The statement said that it is extending guarantee-free loans of up to five lakh rupees at lower interest rates for the growth of micro, small and medium enterprises (MSMEs). This loan is recovered on the basis of daily settlement of the shopkeeper with Paytm and no fee is charged on its premature payment.
Debt repayment is mainly collected from the daily settlement of the merchant with Paytm and there is no prepayment charge on these loans. Paytm claims to have given a loan of Rs 550 crore to more than one lakh merchant partners in the last financial year.
Paytm Lending CEO Bhavesh Gupta said, “With our collateral-free instant loans, we are trying to help grocery stores and other small business owners who are lagging behind the traditional banking sector and have debt.” There is no easy access. ‘
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