Paytm partners with Suryoday Small Finance Bank to offer MSMEs with instant digital loans

India’s home-grown digital financial services platform Paytm announced its partnership with Suryoday Small Finance Bank to offer MSMEs with instant digital loans. The company is furthering the cause of financial inclusion by offering instant microloans to businesses that are unable to access financial services from traditional banking players. The company through this partnership is aiming at disbursing loans to over 1 lakh small businesses in the next 12 months to 18 months.

This is Paytm's first lending partnership with a small finance bank to help merchants get loans seamlessly.

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 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 in a statement, “This tie-up will help us deliver credit on click for small business owners and ensure access to it whenever they want."

"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," says Bhavesh Gupta, CEO- Paytm Lending.

Merchants have to log on to the Paytm for business app, opt for the loan offerand go through a short process of the bank. After they complete the process, the loan amount is disbursed into their bank account.