Xiaomi on Tuesday announced its digital lending solution in India - Mi Credit, a service that has been running in the pilot format in the country. The new platform is an online curated marketplace for lending, to offer the best personal loans to Mi Fans. It has partnered with NBFCs or Fintechs such as Aditya Birla Finance Limited, Money View, EarlySalary, Zestmoney and CreditVidya. The platform will be available as a pre-loaded app on MIUI phones but can also be downloaded from Google Play Store and GetApps, Xiaomi’s own app store.

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The company claims to have already disbursed loans of over Rs 28 crores (approximately ~1 Cr / day) in November 2019 during the pliot phase. It said that over 20 per cent of the users have availed the highest amount of loan Rs 1 lakh. Currently, Mi Credit services more than 10 states spanning across 1,500 pin codes, and aims to expand its availability to 100% of the pin codes (more than 19,000 pin codes) by the end of FY2019.

Xiaomi claims that using this platform, first time users can complete the digital application form within five minutes, and repeat customers can avail a loan with one click disbursement. Once the loan is approved within minutes, the consumer has the option to choose the amount and the tenure of the loan. The digital advantage also shows in realtime disbursement of loans and lower interest rates. The users can also check their credit score instantly on the app, for free, a service which is powered by Experian.

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"In India, the lending industry is on an explosive trajectory. As per a recent report from CIBIL, there are over INR 4 lakh crores worth of personal loans outstanding from nearly 1.9 crore customers, with each user accounting to an almost INR 2 lakh of outstanding amount. Of these 1.9 crore  customers, majority tend to avail it for medical emergencies followed by shopping, wedding, travel and education purposes. We are bringing Mi Credit to India hoping to provide yet another innovative and truly digital solution for their lending needs," Manu Jain, Vice President, Xiaomi and Managing Director, Xiaomi India further said.

This is the second Mi Finance solution to be launched in India by the Chinese smartphone maker after Mi Pay. The latter is a UPI based payment app available on all MIUI phones. It was launched in India in March 2018, and within nine months has already captured over 20 million registered users.