Paytm expands credit distribution business, to offer high ticket loans in partnership with banks and NBFCs
Paytm, on December 6, announced that it will further expand its business to offer higher ticket personal and merchant loans, which would be targeted at lower risk and high credit worthy customers, in partnership with large banks and NBFCs. They will reduce sub-Rs 50,000 loan distribution and expand higher ticker personal and merchant loans, it said.
"We plan to expand offering to include higher ticket personal and merchant loans to lower risk and high credit-worthy customers," the company said in an exchange notification.
Further, the company plans to focus on merchant loans (which are given to MSME as business loans). "As these loans are given for business purposes to small merchants, they don’t get impacted by the recent regulatory guidance," the company said.
Also Read | Paytm slowing down low ticket Postpaid loans by around 50%, accelerating high ticket loans
According to the company's analyst presentation, it has seven NBFC partners for loan distribution and are in the process of integrating one large bank and two large NBFCs, which would be completed during Q4 FY 2024 and Q1 FY 2025.
In addition to this, the company has three credit card partners and is in the process to partner with one more bank, with key focus on Rupay credit card.
Q2 updates
Revenue from financial services and others was up 64 percent YoY to Rs 571 crore. Unique users, in the July-September FY24 quarter, who have taken loan through Paytm platform, reached 1.18 crore. Loan distribution continues to scale with Rs 16,211 crore of loan disbursement (up 122 percent YoY).
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Paytm expands credit distribution business, to offer high ticket loans in partnership with banks and NBFCs - Moneycontrol
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