Paytm aims to disburse loans to over 1 lakh MSMEs in 12-18 months

Indian fintech services giant Paytm has partnered with Suryoday Small Finance Bank to offer instant microloans to Micro, Small, and Medium Enterprises (MSMEs) that are unable to access financial services from traditional banking players.

With this lending partnership, Paytm is aiming at disbursing loans to over 1 lakh small businesses in the next 12 months to 18 months.

From application to approval, 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, eliminating the need to visit the bank.

To apply for the loans, Merchants have to log on to the 'Paytm for Business' app, opt for the loan offer and go through a very short and simple process of the bank. After completing the process, the loan amount is disbursed directly into their bank accounts.

Paytm said the underwriting will be done according to 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.

Commenting on the first lending partnership with a small finance bank, Bhavesh Gupta, CEO at 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 and merchants to promote financial inclusion. With our collateral-free instant loans, we aim to give MSMEs adequate liquidity to grow and expand."