Paytm offers low-interest, collateral-free quick loans of up to Rs. 5,00,000 through partnerships with NBFCs and scheduled commercial banks. It also provides a special daily EMI product designed specifically for small businesses. The "Merchant Lending Program" in the Paytm for Business app is where the loans can be obtained. Based on the merchant's regular transactions, the algorithm establishes his creditworthiness and generates a pre-qualified loan offer.
There are no additional documents needed because the loan application process is entirely digital. There are no pre-payment penalties for these loans; repayment is mostly deducted from the merchant's daily settlement with Paytm.
How to get Paytm Business loan in 5 steps?
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On the Paytm for Business App's home screen, tap the "Business Loan" icon to view the offers that are available to you. Additionally, you can change the loan amount to suit your needs.
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You will be able to see information like the loan amount, the amount to be distributed, the total amount due, the daily installment, the term, and more as soon as you select the amount.
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Verify your information, check the box, then touch "Get Started" to continue. To quickly finish your loan application, you can also permit the CKYC to obtain your KYC information.
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You can confirm or fill out information such as your PAN card information, date of birth, and email address on the following screen. When finished, you can move on to the offer confirmation. Your credit report and KYC information will be examined once your PAN data have been verified.
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The loan money will be deposited into your bank account after you submit your loan application. Please make sure all information is accurate before submitting the completed form.
The number of Merchant Loans disbursed on the platform increased 38% year over year, while the value of Merchant Loans increased 1288% year over year, according to the company's Q3 FY22 report. More than 25% of the loans made were to those with no credit history.
The average ticket size has increased with scale and is currently between 120,000 and 140,000 with an average duration of 12 to 14 months. With 25% of businesses taking out loans more than once, repeat loans have enjoyed a good reception.
