In a noteworthy development, Paytm, a leading player in the financial services sector, is set to implement major changes to its loan offerings.
These modifications, particularly in its Buy Now Pay Later (BNPL) service, will reshape the lending landscape for users. Stay informed about the latest updates if you are considering a personal loan through Paytm.
Shift in Focus: Larger Loans Take Center Stage
Paytm, renowned for providing personal loans through its BNPL service, has decided to recalibrate its loan rules.
The company, as reported by BT, is transitioning away from offering small amount loans, redirecting its focus towards larger loans, including significant personal and merchant loans.
This strategic shift is expected to impact a considerable number of users, emphasizing the company’s commitment to catering to more substantial financial requirements.
Evolution from Small to Large Loans
Initially, Paytm’s loan service, initiated under the Paytm Postpaid umbrella, extended loans for small-scale needs such as daily bill payments, recharges, and other minor expenses.
However, the company is now poised to discontinue smaller loans gradually. This indicates a strategic move, suggesting that Paytm is steering away from loans below the threshold of Rs 50,000.
Adapting to Industry Trends and Regulatory Guidance
With nearly 70% of the company’s loans falling below the Rs 50,000 mark, Paytm’s decision aligns with industry trends and regulatory guidance.
Recent advisories from the Reserve Bank of India urged banks and non-banking financial companies (NBFCs) to exercise caution with potentially risky transactions.
As a response, Paytm is transitioning towards a more extensive loan practice, emphasizing larger amounts.
Diversified Offerings: Paytm’s Gold Buying Facility
While Paytm undergoes these changes in its loan services, it continues to offer diverse financial solutions. One such offering is the facility to buy gold online through the Paytm app.
Users can explore this option by navigating to the search bar, typing ‘gold,’ and accessing the Paytm Gold feature.
The platform provides the flexibility to purchase gold starting from as low as Rs 5, with an additional 3 percent GST applicable on the transaction.
Stay tuned for further developments as Paytm reshapes its financial services landscape.
