Gurugram-based digital financial services platform MobiKwik on Wednesday announced the launch of instant loan services of Rs 5000 on its app, in partnership with Bajaj Finserv.
According to the official statement, this credit disbursal product is in line with MobiKwik’s objective of providing easy and instant credit to millions of Indians.
The product is designed to target millions of new to credit (NTC) customers as well as small business owners in the country. The amount credited can be utilised by the app users for a variety of payments, including bill payments, cab bills, as well as payments to offline and online merchants.
According to the company, there is very high demand for small credit products that can cater to the immediate requirements of payments for clearing bills, paying offline merchants for daily transactions like food, grocery, as well as making other payments.
MobiKwik says the service is a seamless experience that enables instant disbursal of credit, in a matter of 10 seconds, and requires following only three simple steps on its app.
Speaking on the announcement, Upasana Taku, Co-Founder and Director, MobiKwik, said,
“Instant credits for small ticket amounts is a huge untapped opportunity. With the smartphone user base expected to grow by about 16 percent this year and the online transacting user base growing by over 30 percent year on year, we believe that Insta Credit will enable us to reach out to a new set of customers who did not have access to credit till date. We have already pre-approved Rs 3,500 crore of loans for millions of customers across the country. Credit is a billion-dollar opportunity and we are working on rolling out similar products to cater to the low-ticket instant credit requirements, across a wide range of individual and business users.”
MobiKwik and Bajaj Finserv entered into a strategic partnership last year and had set a target to digitise credit for an amount of Rs 1 lakh crore in the next 12 months.
As a part of this partnership, MobiKwik and Bajaj Finserv, through its lending arm, Bajaj Finance Ltd, had launched the mobile application ‘Bajaj Finserv Wallet’ in October last year. The Bajaj Finserv Wallet comes pre-loaded with a digital EMI card, offering security against any fraudulent transaction and makes it easy to block or unblock the card.
But MobiKwik isn’t the first digital payments player getting into short-term credit products. Last November, ICICI Bank and Indian payments platform Paytm jointly launched ‘Paytm-ICICI Bank Postpaid’, their interest-free, short-term digital credit product.
Through this partnership, Paytm also planned to enable access to instant credit for its customers for everyday commerce use cases, ranging from movies to bill payments, flights to physical goods. The Noida-based payments company had then said, based on the credit score of the customer, the bank offers upto 45 days interest-free credit limit. It ranges from Rs 3,000 to Rs 10,000, extendable upto Rs 20,000 based on the repayment history.