Paytm collaborates with Gurugram-based NBFC
India’s widely accepted wallet Paytm and Gurugram-based non-banking financial company (NBFC) Clix Finance have come together offering instant loans to customers and merchants on digital platforms. According to sources, Paytm’s online credit business Paytm Postpaid is transferring its loan book to Clix Capital.
The initiative is basically meant to appeal the new-to-credit, self-employed and small and micro enterprises, which have a tough time getting loan from regular banks. The company plans to offer loans through ‘Deferred Payment’ or ‘Postpaid’ and ‘Merchant Lines’ facilities.
According to a report, the company stated that using proprietary machine learning models developed by Paytm and Clix, Paytm customers and merchants will get instant digital loans on the Paytm platform. Senior Vice-president Paytm Nitin Misra in a statement said, “We have seen an overwhelming response to Paytm Postpaid and merchant lending products. With this partnership, we aim to bring our credit tested algorithmic lending products to a larger customer and merchant base.”
This has come after a PIL was filed in the Delhi High Court alleging Paytm Payments Bank was offering credit to its users where as through it customers can only buy goods and services and make settlements later. As per the Reserve Bank of India’s norms, a payment bank is not allowed to extend credit and can accept deposits only up to Rs 1 lakh and in response to the PIL, the Delhi High Court had sought responses from both Paytm and the RBI.