MSMEs alert! Instant digital HASSLE-FREE microloans to small businesses - Here is how

It's good news in terms of instant microloans for those MSMEs that are unable to access financial services from traditional banking players. Digital financial services platform Paytm has announced its partnership with Suryoday Small Finance Bank to empower MSMEs with instant digital loans.

This is the first lending partnership for Paytm with a small finance bank to help merchants get loans seamlessly. The company through this partnership is aiming at disbursing loans to over 1 lakh small businesses in the next 12 months to 18 months.

Announcing the partnership, a company statement said, "Paytm has made 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. Merchants will not have to visit the bank branch as the entire journey from application to approval will be completed on the Paytm app itself. The company said that underwriting will be done as per 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."

Baskar Babu, MD & CEO, Suryoday Small Finance Bank said, “As a small finance bank we focus on delivering products with great customer experience, this tie-up will help us deliver credit on click for small business owners and ensure access to it whenever they want. Our partnership with Paytm on the lending side is API driven which will bring in a secure, intelligent, and connected digital experience."

Bhavesh Gupta, CEO - 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, merchants & promote financial inclusion. With our collateral-free instant loans, we aim to give MSMEs adequate liquidity to grow and expand."

The company said that the entire process of applying for loans is completely seamless. Merchants have to log on to the Paytm for Business app, opt for the loan offer & go through a very short and simple process of the bank. After they complete the process, the loan amount is disbursed directly into their bank accounts.

Recently, Paytm had announced waiver of all charges on merchant transactions. The company is now taking payments revolution to the next level by enabling the merchant partners to accept payments from Paytm wallet, UPI apps and RuPay cards at Zero charges. Paytm will absorb Rs 600 crore in MDR charged annually by banks and other charges to support MSMEs during the ongoing pandemic. This move would help in ensuring that they have adequate liquidity to expand their businesses.  

This initiative will benefit more than 17 million merchants on Paytm ecosystem who use Paytm All-in-One QR, Paytm Soundbox and Paytm All-in-One Android POS to accept payments from their customers. Merchants will also have the power to choose whether they want to receive payments directly into their bank accounts or into their Paytm wallet. The company has been promoting acceptance of payments through all methods including Paytm Wallet, UPI, Rupay, NEFT & RTGS among others and empowers merchants to accept unlimited payments Paytm All-in-One QR at zero charges.