India’s home-grown digital financial services platform Paytm announced its partnership with Suryoday Small Finance Bank to empower MSMEs with instant digital loans. This is the first lending partnership for Paytm with a small finance bank to help merchants get loans seamlessly. This is as per a report in the Economic Times.
Collaboration between Paytm and Suryoday Small Finance Bank aims at broadening the lending landscape and Promote financial inclusion by offering collateral-free loans.The company through this partnership is aiming at disbursing loans to over 1 lakh small businesses in the next 12 months to 18 months
Bhavesh Gupta, CEO – Paytm Lending said, “We are happy to welcome Suryoday Small Finance Bank as our partner to empower MSMEs with instant loans. Our partnership aims towards democratizing access to loans for small businesses, merchants & promote financial inclusion. With our collateral-free instant loans, we aim to give MSMEs adequate liquidity to grow and expand.”
Paytm has made the entire process of availing loans completely digital and hassle-free so that merchants can transact with the bank and take loans with just a tap on the phone. Merchants will not have to visit the bank branch as the entire journey from application to approval will be completed on the Paytm app itself.
Baskar Babu, MD & CEO, Suryoday Small Finance Bank said, “As a small finance bank we focus on delivering products with great customer experience, this tie-up will help us deliver credit on click for small business owners and ensure access to it whenever they want. Our partnership with Paytm on the lending side is API driven which will bring in a secure and connected digital experience.”
The company said that underwriting will be done as per an agreed credit policy of the bank within seconds and post-approval the customer will be disbursed by Suryoday. The systems are designed for real-time approval and disbursement thereby guaranteeing a superior customer experience.