Paytm, Piramal Finance Join Hands To Offer Loans To Merchants And Small Businesses

One 97 Communications Limited that owns the brand Paytm on Wednesday (10 August) announced a partnership with Piramal Capital and Housing Finance Ltd to expand distribution of merchant loans to the small cities and towns of India.

Piramal Capital & Housing Finance Ltd. is a wholly-owned subsidiary of Piramal Enterprises Limited and an established financial services company in India.

This partnership will expand Paytm's loan distribution business, supported by Piramal Finance's wide network of over 300 branches across India. It will also help drive financial inclusion by bringing access-to­credit to small businesses and retailers, the company said in a regulatory filing.

Paytm has acquired a large number of merchants from big and small cities across the country, amassing a large base which Piramal Finance plans to leverage and bring ease of credit to small business owners through data-driven underwriting along with credit sanctions based on business income, it added.

Additionally, this partnership will be expanded soon to include personal loans, where Piramal Finance brings its deep understanding of risk and customer segment.

Paytm's lending business has seen massive adoption and this partnership will further bring new-to-credit merchant partners to the platform. It will allow them to seamlessly avail loans and meet the capital requirements for their business.

Merchant partners will be able to avail loans of up to Rs 10 lakh with a tenure of 6-24 months, the company said.

To drive convenience, Paytm will enable a completely digital onboarding process with minimum documentation, it added.

Bhavesh Gupta, CEO of Lending and Head of payments at Paytm, said, "We continue to see rapid growth across all our lending products, where we empower MSMEs from smaller cities and towns with access to digital credit. The success and scale of our lending products gives us the confidence to expand and further boost our credit offerings. Our partnership with Piramal Finance is another step in that direction, where we will together bring more merchants into the formal credit economy."

Jairam Sridharan, Managing Director, Piramal Capital and Housing Finance Ltd said, "We aim to cater to the lending needs of the merchants in the Bharat markets through a variety of products that are relevant to this core segment. Many of these merchants are loyal Paytm customers and this partnership will bolster our proposition through a mix of technology and network of branches located in tier-II and tier-Ill towns. Our ability to underwrite this segment and collect in local markets, coupled with Paytm's digital access to this base, we believe we can offer compelling lending solutions."