Paytm, Piramal team up to offer loans to merchants, small businesses

Paytm's parent company One97 Communications has announced a partnership with Piramal Finance (erstwhile Piramal Capital and Housing Finance) to expand the distribution of merchant loans to small cities and towns in India.

The partnership will expand Paytm's loan distribution business through Piramal Finance's branches across India. As part of this partnership, merchants can get loans of up to Rs 10 lakh with a tenure of 6-24 months.

Here's how merchants can avail loans on the Paytm for Business app

1. Select the 'Business Loan' option on the Paytm for Business App home screen and fill in the loan amount

2. Enter information like loan amount, amount to be disbursed, total payable, daily instalment, tenure and more

3. Confirm details and click on the check box and tap on 'Get Started' to process

4. Here, merchants can give their consent to KYC details from CKYC to complete the loan application process

5. After that, you have to confirm personal details like PAN, date of birth and email address.

6. Credit score will be checked for loan eligibility and KYC details will be verified

7. Loan amount will be disbursed in the selected amount of the merchant once the application is verified successfully

Commenting on the One97 Communications-Piramal Finance partnership, CEO of Lending and Head of Payments at Paytm Bhavesh Gupta said, "We continue to see rapid growth across all our lending products, where we empower MSMEs from smaller cities and towns with access to digital credit."

"Many of these merchants are loyal Paytm customers and this partnership will bolster our proposition through a mix of technology and network of branches located in tier-2 and tier-3 towns. Our ability to underwrite this segment and collect in local markets, coupled with Paytm's digital access to this base, we believe we can offer compelling lending solutions," Piramal Finance MD Jairam Sridharan noted.