Paytm, one of the leading mobile payments and financial services distribution companies of India said that it will expand its credit distribution business. It was on Wednesday when the company, in partnership with large banks and NBFCs, offered higher ticket personal and merchant loans for lower-risk and highly credit-worthy customers.
With the widespread acceptance of loan distribution and strong portfolio performance, Paytm witnessed encouraging early trends when the company started working in this direction last quarter.
The spokesperson of Paytm said, "As the lending distribution business is maturing, we see newer opportunities of expansion to offer high-value personal and merchant loans. We will continue to focus on originating the high portfolio quality for our lending partners, along with strict adherence to risk and compliance. We have seen great scale and acceptance for our loan distribution business, so we believe this expansion will further aid us to grow the business.”
Recently, macro development and regulatory guidance and in consultation with lending partners, the company kept its focus on driving a healthy portfolio and has further recalibrated the portfolio origination of less than Rs 50,000 - majorly the postpaid loan product which will now be a smaller part of its loan distribution business from the way ahead.
Paytm has reportedly continued focusing on merchant loans that are lent to MSMEs as business loans. Given that these loans are extended for business purposes to support small merchants, they remain unaffected by the recent regulatory guidance.
The company stated that it continues to add banks and NBFCs as its lending partners for its loan distribution business.
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Inputs from IANS
