Online financial services platform Paytm India has announced its alliance with Suryoday Small Finance Bank to empower MSMEs with instant digital loans. The company is advancing the cause of financial inclusion by offering instant microloans to businesses that are unable to access financial services from traditional banking players. The company through this partnership aims at providing loans to over 1 lakh small businesses by the next 12 to 18 months.
As the entire process from the application to approval of the loan will be completed on the Paytm app itself, the merchants no longer need to visit the bank branch. Within seconds the underwriting process will be done as per the agreed credit policy of the bank and post-approval of the customer will be disbursed by Suryoday. Baskar Babu, MD & CEO, Suryoday Small Finance said in a statement that this tie-up will help them to deliver credit on a click for small business owners and also ensure access to it whenever they want.
According to Bhavesh Gupta, CEO of Paytm Lending, this partnership aims at democratizing access to a loan for small businesses, merchants & promote financial inclusion, and also with the collateral-free instant loan, Paytm aims to give MSMEs adequate liquidity to grow and expand.
Paytm has also announced a waiver of all charges on MSME merchant transactions, the main aim of this is to ensure that these merchants have adequate liquidity to expand their business. Paytm is now taking their payment services to the next level by enabling the merchant partners to accept the payment from the UPI app, Paytm wallet, and RuPay card at zero charges. The company aims to absorb Rs. 600 crore in MDR charged annually by banks and other charges to help and support MSMEs during the on-going pandemic.
Paytm is coming up with various strategies to help and provide support to MSMEs that are suffering from the on-going COVID-19 pandemic. Many MSMEs lost their sales and are on the verge of a shutdown during this pandemic and most of them require fresh funds to restart the business and these initiatives of Paytm will help them to a great extent.
