Digital payments platform PayU India has partnered with a non-banking financial company Reliance Money, a part of Reliance Capital, to offer instant app-based personal loans to customers under LazyPay through the Citrus app.
Talking about the partnership, Devang Mody, Chief Executive Officer of Reliance Money, said, “The tie-up helps Reliance Money move ahead in its financial inclusion effort of “go-retail” by reaching out to underserved customers with innovative financial solutions. The customers stand to gain by getting instant credit through a paperless process as an added facility with the benefit of flexible tenure,”.
Reliance Money will provide loans ranging from ₹100 to ₹1 lakh for a time period ranging from 15 days to 24 months, depending on the creditworthiness of the individual. The company is also planning to extend its personal loan products to non-salaried individuals as well.
To ensure loan repayments, Reliance Money will be performing creditworthiness checks of its customers, and it is also exploring direct debit facility to keep the loan defaults at bay.
This tie-up will enhance their capabilities and the network reach of the companies to provide hassle-free credit to accommodate the growing needs of its customers.
The product will be available to the consumers in the top 50 cities including Ahmedabad, Jaipur, Hyderabad, Bangalore at first, and it will be extended to 110 cities by the end of third quarter of this year.
Reliance Money, a non-banking financial corporation, is committed to providing loans to small, and medium enterprises, along with retail consumers to help them realize their dreams. So far the company has served over 4 lakh MSMEs and disbursed over ₹88,000 crores.
Late last month, Leading online payment service provider PayU had launched a new platform called ‘PayUnow’ to help offline Indian business to have an online presence. Prior to that, PayU had also invested in Mumbai-based PaySense, a fintech startup focused on providing instant and low-interest loans to its customers.
With many fintech startups focused on digital lending in the Indian market, Indian consumers will certainly benefit as they try to capture the market to establish themselves.