A Partnership between Paytm and Suryoday Small Finance Bank to Empower MSMEs with Instant Digital Loans

To strengthen the Indian MSMEs, the India’s most popular payment system partners with Suryoday Small Finance Bank, providing instance digital loans to them. The partnership program will assist those businesses that do not access to financial services from traditional banking system, offering the instant microloans to them. The aim of the paytm company is to disburse loans to over 1 lakh small businesses during the upcoming 12-18 months, under this partnership program. This is the first lending partnership between Paytm and a small finance bank to give a hand to traders to have loans seamlessly.

The entire process of getting the loan has been made completely digital and hassle- free by the Paytm, in order that businessmen can easily transact with the bank and get the loan only by touching the phone screen. They do not need to go to bank branch in person, because the whole process is completed on the Paytm application. Paytm Company said that “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, “As a small finance bank we focus on delivering products with great customer experience, this tie-up will help us deliver credit on click for small business owners and ensure access to it whenever they want. Our partnership with Paytm on the lending side is API driven which will bring in a secure, intelligent, and connected digital experience.”

Bhavesh Gupta, CEO – Paytm Lending said, “We are happy to welcome Suryoday Small Finance Bank as our partner to empower MSMEs with instant loans. 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.”

The company stated that the “entire process of applying for loans is completely seamless. Merchants have to log on to the Paytm for Business app, opt for the loan offer & go through a very short and simple process of the bank. After they complete the process, the loan amount is disbursed directly into their bank accounts.”

The partnership program has the following advantages:

• More than 1 lakh small businesses will benefit through this partnership during the upcoming 18 months.
• It is a strategic collaboration to enlarge the lending platform and provide hassle-free loans
• The first completely digital MSME lending program by a small finance bank in collaboration with Paytm
• Saves merchants from availing expensive loans by offering a competitive-interest rate & daily repayment flexibility
• Promoting financial inclusion by offering collateral-free loans