Xiaomi has announced the launch of Mi Credit, its digital lending solution, in India. Mi Credit is Xiaomi’s second finance solution to be launched in India after Mi Pay.
Mi Credit is an online curated marketplace for lending, with its current lending partners primarily being NBFCs and fintechs such as Aditya Birla Finance Limited, Money View, EarlySalary, Zestmoney, and CreditVidya.
Mi Credit has been running in India in a pilot format and has already disbursed loans of over Rs 28 crore (approximately ~Rs 1 crore per day) in November 2019. Over 20 percent of the users have availed the highest amount of loan of Rs 1 lakh. Currently, Mi Credit services 1,500 pin codes across 10+ states and aims to expand its availability to 100 percent of the pin codes (more than 19,000 pin codes) by the end of FY19.
Xioami claims a first in users being able to complete the digital application form within five minutes on the Mi Credit app. Repeat customers can avail a loan with one-click disbursement, the company said.
Manu Jain, Vice President, Xiaomi, and Managing Director, Xiaomi India, said,
“In India, the lending industry is on an explosive trajectory. As per a recent report from CIBIL, there are over Rs 4 lakh crore worth of personal loans outstanding from nearly 1.9 crore customers, with each user accounting for almost Rs 2 lakh of outstanding amounts. Of these 1.9 crore customers, the majority tend to avail the loans for medical emergencies, followed by shopping, wedding, travel, and education purposes. We are bringing Mi Credit to India hoping to provide yet another innovative and truly digital solution for their lending needs.”
Mi Credit app comes preloaded on all MIUI phones, and can also be downloaded from Google Play Store as well as GetApps, Xiaomi’s own app store. The company said users can also check their credit score instantly and for free on the app, a service powered by Experian.
Xiaomi claims that all user data on Mi Credit is stored securely in an encrypted format in India through its partner, Amazon Web Services Cloud Infrastructure.
Hong Feng, Co-founder and Senior Vice President, Xiaomi Corporation, and Chairman and CEO, Xiaomi Finance, spoke on the global launch of Mi Credit outside China. He said, “We see a huge opportunity for consumer lending in India with estimations reaching up to $1 trillion dollars in digital lending by 2023, as per a report from BCG. This makes us believe that our Mi finance business, based on solutions such as Mi Pay and Mi Credit can truly revolutionise the Indian fintech industry.”
(Edited by Athirupa Geetha Manichandar)