Google, the global tech giant, is rolling out an array of new services for Indian users, with a particular focus on assisting small business owners. This move positions Google to compete with companies like Paytm and BharatPe.
Google India has introduced the “GPay Loan” feature on the Google Pay application, aimed at providing support to small businesses by offering loans of up to Rs 15,000.
Streamlined Application Process
Google Pay is simplifying the loan application process, minimizing the need for extensive paperwork.
All required documentation can be completed online, eliminating the need for physical visits to any office.
These small loans are referred to as “sachet loans,” and they are easily accessible for users through Google Pay.
Partnerships and Expansion
To facilitate these loans, Google Pay has joined forces with DMI Finance, enabling small business owners to access credit. Additionally, Google Pay has collaborated with ePayLater, introducing a credit line feature for merchants.
This credit line allows merchants to make purchases from both online and offline retailers. Google will leverage its vast database and artificial intelligence to tailor loan offers according to individual needs.
Collaborations with multiple banks and Non-Banking Finance Companies (NBFCs) position Google for a strong entry into the rapidly growing loan sector in India.
Understanding Sachet Loans
Sachet loans are a type of small, short-term loans that are typically pre-approved. They are readily available, with loan amounts ranging from Rs 10,000 to Rs 1 lakh and loan tenures spanning from 7 days to 12 months.
Obtaining a sachet loan is hassle-free, typically requiring the download of an app or an online application, making the process more straightforward compared to traditional loans.
Eligibility and How to Apply
Currently, sachet loans are available in Tier 2 cities to individuals with a minimum monthly income of Rs 30,000. To apply for a loan through Google Pay, follow these steps:
- Open your Google Pay for Business app.
- Navigate to the Loans section and click on the Offers tab.
- Select the desired loan amount and click “Get started.”
- You will be redirected to the lending partner’s website. Log in to your Google account and provide personal details, specify the loan amount and duration.
- Review the final loan offer and electronically sign the loan agreement.
- Submit necessary KYC documents for verification.
- Set up EMI payments through eMandate or NACH.
- Submit your loan application, and your loan will be processed.
- Track your loan in the “My Loan” section of your app.
With this seamless process, Google Pay is making loans more accessible and convenient for small businesses and individuals in need.