Paytm ramps up credit distribution business focusing on big ticket loans in partnership with banks, NBFCs

India's leading payments and financial services distribution company Paytm has announced the expansion of its loan distribution business with an enhanced focus on higher ticket loans for consumers and merchants.

The company highlighted that these loans will be targeted at lower-risk and high-credit-worthy customers in partnership with large banks and NBFCs.

Amid recent macro developments and changes in regulatory guidelines, Paytm maintains its commitment to building a strong portfolio.

The company said it has recalibrated the loan portfolios of less than Rs 50,000, notably the postpaid loan product, which will now be a smaller part of its future loan distribution business.

The company said it remains focused on merchant loans, specifically catering to Ministry of Micro, Small and Medium Enterprises (MSMEs) as business loans. Since these loans serve business purposes for small merchants, Paytm said they remain unaffected by recent regulatory guidance.

"As the lending distribution business is maturing, we see newer opportunities for expansion to offer high-value personal and merchant loans. We will continue to focus on originating the high portfolio quality for our lending partners, along with strict adherence to risk and compliance. We have seen great scale and acceptance for our loan distribution business, so we believe this expansion will further aid us to grow the business," said a Paytm spokesperson.

Paytm said it continues to add banks and NBFCs as its lending partners for its loan distribution business.