Digital payment service provider Paytm has said on Monday that it will disburse loans up to Rs 1,000 crore to shopkeepers by March next year.
Under this, they will provide unsecured loans to the shopkeepers using a business app, under the 'Merchant Lending Program' i.e. the loan program to the shopkeepers. In a statement, the company said that it will provide a total loan of Rs 1,000 crore to its 1.7 crore shopkeepers.
According to Paytm, shop owners will be able to digitize their business using this amount. This will also diversify their operations, improve efficiency, and help them join the Digital India mission. Daily transaction of Paytm shopkeepers before giving loan determines eligibility.
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The company then provides non-guaranteed loans in partnership with non-banking financial companies (NBFCs) and banks. According to the statement, the company is extending guarantee-free loans of up to Rs five lakh in low-interest rates to strengthen micro, small and medium enterprises (MSMEs).
This loan is recovered daily from the shopkeeper's Paytm account. The company does not charge any additional charges for premature repayment of such loans.