Digital payments company paytm plans to provide a Paytm Loan of Rs 1,000 crore to Micro Small and Medium Enterprises (MSME’s) by march 2021 to strengthen its hold in the merchant lending business. Paytm will lend to these entrepreneurs, who are unable to get loans to start employment from regular banks. Paytm provide a paytm loan of Rs 550 crore as a loan to MSME’s in FY 2019-20. But this year the company has now increased this amount to Rs 1,000 crore.
Paytm rivals google pay and phone pay have also made strides in the filed of merchant lending, which along with several licence banks and NBFC’s (Non Banking Finance Company) are giving loans to small traders. To counter this, Paytm has increased the loan amount for Micro Small and Medium Enterprises (MSME’s).
Paytm lending CEO Bhavesh Gupta said that the company will offer collateral-free instant loans of up to Rs 5 Lakh to small traders and MSME’s at very low interest, without pledging any guarantee.
Benefits of Paytm Loan
The biggest challenge for small- and medium-sized businesses is cash flow, and each business needs a fresh infusion of working capital to restart the operations post COVID 19 lockdown. We are here to help you take one step closer to your business dreams. It is the time to take a leap and grow your business and we are there to support you with the same by providing you a easy business loan. Paytm business loan is one of the easiest and quickest ways of getting finances for your business.
Eligibility of Paytm Loan
The algorithm of the Paytm Business app will decide which people are eligible to take a loan and who are not. The algorithm of this app decide on the basis of settlement settled on paytm by the merchant whether the loan in able to repay the loan or not. In FY 2019-20, Paytm had given a loan loan of 550 crore to more then 1 lakh small traders and MSME’s. Paytm lending CEO Bhavesh Gupta said that the process from applying for a loan to giving a loan is completely digital and does not require any additional documents.
How you can Take Paytm Loan
As far as the Paytm Loan amount is concerned, paytm has its own system which fixes a fixed loan amount based on the daily transaction of a buinessman, which the borrower can get. Paytm has digitized all the processes starting from loan application, including loan application, sanction and allotment. It does not require any additional documents in partnership with NBFC’s (Non Banking Finance Company) and banks. Loan repayment in mainly collected from the merchant’s paytm from the daily settlement and there is no prepayment charge on these paytm loan.
Paytm has more than 17 million merchant partners across the country. paytm all in one QR allows these small businesses to accept payment directly into their bank accounts (both proprietary or third party), UPI and RuPay cards. They are not charged for this. According to Bhavesh Gupta (CEO of Paytm Lending), through collateral free loans, we are trying to help those to help those grocery stores and other small business owners who are lagging behind the traditional banking sector. Going forward, we will focus exclusively on EDC traders and provide more loan amount based on their EDC transactions.
Advantages of using Paytm Business Loan
- The process is paperless and it is fully digital
- There is no need to visit the branch
- Daily installments can be paid right with the help of an app
- No hidden costs are associated with the same
- There are no beforehand charges or locking period and the amount can be repaid at the end of the loan
- Maintain a good balance on Paytm: There should be a minimum transaction which you should maintain with Paytm on a monthly basis. In this way, getting a business loan will become easier.
- Collections from your account should be active: The consistency level should be managed and if there are daily collections, then it adds to the credit score of merchants and loan can be availed earlier than others. Maintaining the same amount on a 3 to 5 months basis can be considered as a consistency.
- Growth of customer base: The customer base should also be consistent one with both new and returning customers maintained. These are signs that business is growing and it will grow more in the near future.
- Paytm relation should be clean: The relation of a merchant with Paytm should be a clean one with no kind of defaults. There should not be complaints and the records should be tracked free as much as possible.
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