Paytm offers loans to kirana stores, auto & taxi drivers, chemist and other small scale merchants
Digital online payment platform Paytm is now offering unsecured and low-interest loans for its registered merchants.
Paytm making this arrangement by sharing the profile and transaction history of merchant user to third party financial institutions for checking the capability of the merchant and risk assessment. The credit profile depends on different factors like value and volume of transactions.
We can say that this loans will be sanction by third party financial institutions and will provide loans to auto and taxi drivers, Kirana stores, chemists and other small scale merchants who are regularly using the platform Paytm for regular payment transaction.
The loans will be provided on a lower interest rates than other alternatives. Amount of Rs. 10,000 to 1,00,000 loan will be given to its users depending upon on their profile.By this dervice Paytm will be beneficial as more user will start to use Paytm platform for transactions.
This will give more boost to Narendra Modi’s digital India campaign. And as we know nowadays many shop keepers use to return chocolates on behalf of 1Rs, 2Rs and 5Rs on a reason of due to shortage of coins. So the Paytm payment will be helpful to both the users and also merchants for the capital loan.