Google India has introduced a convenient small loan facility, referred to as ‘Sachet Loan,’ specifically aimed at small traders and businesses.
This initiative allows small merchants to access loans starting at just Rs 15,000 via Google Pay.
The unique feature of ‘Sachet Loan’ is its flexibility in repayment, enabling borrowers to pay back the loan in manageable installments, with amounts as low as Rs 111.
Google India has partnered with DMI Finance to make this service possible.
Overview of Sachet Loans
Sachet loans are essentially nano-credit or very small loans intended for short tenures.
These loans are typically pre-approved and provide immediate access to funds, ensuring a simplified application process.
They typically start at Rs 10,000, with repayment periods ranging from 7 to 12 months.
To access sachet loans, borrowers may be required to download a loan app, apply online, and undergo a straightforward verification process.
Rise of Instant Loans and Credit on UPI
In recent years, fintech companies have shown an increasing focus on providing instant loans to meet the financial needs of individuals and businesses.
Our experience with merchants has taught us that they often need smaller loans and simpler repayment options.
— Google India (@GoogleIndia) October 19, 2023
The ubiquity of UPI (Unified Payments Interface) has enabled the extension of credit services on the UPI platform.
This development has opened up new avenues for borrowers to access credit quickly and efficiently, contributing to the evolving landscape of digital financial services.