Paytm Focuses On High-Ticket Personal Loans Partnering With Large Banks & NBFCs

Paytm, a popular mobile payments and financial services company in India, has announced that it will expand its credit distribution business. This means that Paytm will offer higher-value personal and merchant loans to customers who have a lower risk of defaulting on their payments and have a good credit history.

But analysts have downgraded or cut their price targets for One 97 Communications Ltd., the parent company of Paytm, after the company announced plans to scale back small ticket loans and recalibrate its Buy Now, Pay Later (BNPL) business. 

However, Paytm has already seen positive results from its loan distribution business, with many customers accepting and repaying their loans on time. The company believes that by expanding this business, it will be able to grow even further.

Paytm will continue to work with large banks and non-banking financial companies (NBFCs) to offer these loans. It will also focus on maintaining a high-quality portfolio of loans and ensuring that it follows all the necessary risk and compliance guidelines.

Recently, Paytm has made some changes to its loan distribution business. It has decided to reduce the number of loans it offers for amounts less than Rs 50,000. Instead, it will focus more on offering loans to small businesses (MSMEs) to support their growth.

Paytm is also adding more banks and NBFCs as lending partners for its loan distribution business. This means that it will have more options to offer loans to its customers.

Simply, Paytm's expansion of its credit distribution business means that more customers will have access to loans for personal and business purposes. This will help them meet their company’s vision & goals.