PayU ventures into personal loans, increases ticket size as it partners with Reliance Money
Naspers-owned PayU India on Wednesday announced its partnership with NBFC Reliance Money, which is a part of Reliance Capital. The partnership will allow PayU to offer app-based personal loans via LazyPay, for the underserved consumers in India.
Earlier, in May, LazyPay announced its entry into the consumer electronic space by partnering with consumer electronics firms Samsung Electronics and retailer Croma.
In a statement, PayU said that the new offering taps into the growing marketing opportunity, thereby enabling the consumers an access to instant digital personal loans.
This partnership will allow loans starting from as low as Rs 100 all the way to Rs 1 lakh for a duration from 15 days to 24 months, depending on the creditworthiness of the individual.
Further, this credit can be availed via LazyPay on Citrus App. With this partnership, Reliance Money, the NBFC partner, will extend instant digital personal loans to both salaried and non-salaried individuals with repayment linked to their bank accounts.
Reliance Money would carry out its one-step due diligence of checking the creditworthiness of the customers, which will substantially bring down the ‘time to check’ and improve the turnaround time of the credit flow to the KYC-enabled customer.
As a measure to keep repayments under check, the company is seeking direct debit facility on the customer’s account.
Speaking about the tie-up, Devang Mody, Executive Director and CEO of Reliance Money, said,
“The tie-up helps Reliance Money to move ahead in its financial inclusion effort of ‘go-retail’ by reaching out to underserved customers with innovative financial solutions. Further, any increase in PayU India’s client base will directly and positively impact our bottom-line.”
Extending the credit facility to larger ticket size, Jitendra Gupta, Managing Director of PayU said,
“We have realised that there is an unfilled gap in the market catering to borrowers seeking instant cash loans. PayU’s vision is to bridge the credit gap in India and enable easy access to instant needs. Through this partnership we aim to offer credit beyond traditional means and enable hassle-free access to credit to address the growing needs of consumers.”
To begin with, this facility will be available to consumers in top 10 cities, including metros and Tier-II cities like Ahmedabad, Jaipur, Hyderabad, Bengaluru, Chandigarh, Lucknow. The facility will be extended to 110 locations by the end of third quarter of the current year.
At present, PayU’s offerings are presently used by over 3,00,000 merchants all across India. It launched its deferral payment option ‘LazyPay’, online in April last year.
