In order to increase higher ticker personal and merchant loans, they will decrease the distribution of sub-Rs 50,000 loans.
On December 6, Paytm declared that, in collaboration with major banks and NBFCs, it will further develop its business to offer higher ticket personal and merchant loans that are aimed at lower risk and highly creditworthy clients. According to the statement, they will increase higher ticker personal and merchant loans while decreasing sub-Rs 50,000 loan distribution.
In an exchange notification, the company stated, “We plan to expand offering to include higher ticket personal and merchant loans to lower risk and high credit-worthy customers.”
The business also intends to concentrate on merchant loans, which are provided as business loans to MSME. “As these loans are given for business purposes to small merchants, they don’t get impacted by the recent regulatory guidance,” the business stated.
In its analyst presentation, the company stated that it has seven NBFC partners for loan distribution and that it is currently integrating one large bank and two large NBFCs. This integration is expected to be finished in Q4 and Q1 of FY 2024 and 2025.
With a primary focus on the Rupay credit card, the company also has three credit card partners and is in the process of partnering with another bank.
At Rs 571 crore, revenue from financial services and other sources increased by 64% year over year. 1.18 crore unique users used the Paytm platform to take out loans during the July–September FY24 quarter. With a loan disbursement of Rs 16,211 crore (up 122% YoY), loan distribution is still growing.
