Express news service
Chinese tech giant Xiaomi officially presented its digital lending solution in India – Mi Credit on Tuesday. The solution promises to disburse loans up to Rs 1 lakh in five to ten minutes. Mi Credit is operating in India in a pilot format and has already disbursed loans over Rs 28 crore in November 2019.
Currently, the service can be used in more than 10 states covering 1,500 PIN codes. Xiaomi aims to expand its availability to 100% PIN codes by the end of fiscal 2019. Mi Credit is Xiaomi’s second Mi Finance launched in India after Mi Pay.
“In India, the lending industry is on an explosive trajectory. According to a recent report from CIBIL, there are over Rs 4 lakh crore of personal loans outstanding from nearly 1.9 crore from clients, each user representing almost Rs 2 lakh of unpaid amount, ”said Manu Jain, vice -President, Xiaomi and MD, Xiaomi India.Xiaomi in its study found that the majority of customers use credit for medical emergencies, followed by shopping, weddings, travel and education.
To qualify for the loan, new users can complete the digital application form within five minutes, and repeat customers can get a loan with one-click disbursement. Once the loan is approved within minutes, the consumer has the option of choosing the amount and duration of the loan. For the maximum limit, which is Rs 1 lakh, a consumer has the option to save the amount in three to 12 months. Interest rates on Mi Credit start at 1.35% per month.
Xiaomi claims Mi Credit will offer easy and paperless application process KYC. Xiaomi has partnered with Aditya Birla Finance Ltd, Money View, EarlySalary, Zestmoney and CreditVidya among other Fintech and NBFC brands as loan partners for Mi Credit service. Jain said one of the advantages of the service is that the loan can be credited to accounts at all major Indian banks, adding, “In addition, all the data we collect would be stored on Mi servers in India.
“Xiaomi’s Mi Finance business started four years ago in China, with the aim of providing Fintech innovation to everyone… We see a huge opportunity for consumer lending in India with estimates reaching up to 1 Trillion dollars in digital loans by 2023, according to a BCG report. It makes us believe that our Mi Finance business can truly revolutionize the industry, ”said Hong Feng, co-founder and senior vice president of Xiaomi Corporation.