The collaboration will target the self-employed and small and micro enterprises, who often find it hard to get a loan from regular banks.
The company stated that using proprietary machine learning models developed by Paytm and Clix, Paytm customers and merchants will get instant digital loans on the Paytm platform.
The product offering will include ‘Deferred Payment or Post-paid’ and ‘Merchant Lines’ among other products for Paytm customers and merchants, the company added.
“We have seen an overwhelming response to Paytm Postpaid and merchant lending products. With this partnership, we aim to bring our credit tested algorithmic lending products to a larger customer and merchant base,” Nitin Misra, senior vice president, Paytm, said.
Paytm was founded in 2010 by Vijay Shekhar Sharma with an aim to bring an ease in the digital payments ecosystem across India.
While, Clix Capital Services Private Limited was founded in 1994 and is based in Gurugram, India. The company provides financing services worldwide. It was formerly known as GE Money Financial Services Pvt. Ltd.
Bhavesh Gupta, CEO, Clix, said, “At Clix, our goal is to empower our customers by offering credit facilities that are seamlessly integrated with their purchase journeys. Built on customer-centricity and strong technological and analytical capabilities of both partners, we believe that our partnership with Paytm will be a significant step towards taking customer experience to a completely new level.”
Paytm’s other NBFC partners includes Tata Capital and Indifi. But, an inquiry was filed against Paytm in May, alleging the company’s payments bank was offering credit to its users, which was against regulations.