Paytm signs deal with Suryoday Small Finance Bank to grant instant loans to MSMEs

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Paytm, which is India’s home-grown digital financial services platform announced its partnership with Suryoday Small Finance Bank on Wednesday with an attempt to empower MSMEs with instant digital loans.

The company is making attempts to advance financial inclusion by offering instant microloans to the businesses which are not able to access financial services via traditional banks. Through this partnership, Paytm is aiming at giving out loans to over 1 lakh small businesses in the next 12 to 18 months.

Paytm is in attempts of making the procedure of availing loans entirely digital and hassle-free so that the merchants can make transactions and avail loans with one click. They wouldn’t have to visit the bank’s branch as the entire process of a loan transaction can be done on the app itself.

The company stated that the underwriting will be done according to an agreed credit policy of the bank within seconds and post-approval the customer will be disbursed by Suryoday.

“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,” Baskar Babu, MD & CEO, Suryoday Small Finance Bank 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,” said Bhavesh Gupta, CEO Paytm Lending.

Paytm has mentioned that the loan application process is entirely seamless. The merchants will have to log on to the Paytm for Business app, select the loan offer option& go through a brief and simple process of the bank. After the process completion, the loan amount is directly disbursed into