In a major announcement, Google Pay, a leading online payment provider in India, revealed plans to introduce a range of credit products aimed at both consumers and merchants.
These initiatives are being undertaken in collaboration with banks and non-banking financial companies (NBFCs). Among the key offerings is the introduction of sachet loans for consumers and merchants.
These small-ticket loans, ranging from Rs 10,000 to Rs 1 lakh, will be available through the Gpay app and will feature flexible repayment options spanning from 7 days to 12 months.
Google Pay has partnered with DMI Finance to facilitate these loan services. In addition to sachet loans, Google Pay is also expanding its personal loans portfolio through a partnership with Axis Bank.
What is sachet loan?
Sachet loans are a form of nano-credit or bite-sized loans that are provided for a brief tenure and are mostly approved immediately, followed by instant disbursal of the loan amount.This line of credit is usually available in ranges of Rs 10,000 and Rs 1 lakh, and can offer tenures between 7 days and 12 months.
Google Pay sachet loan
The platform is also providing credit lines from banks via UPI, in association with ICICI Bank. These services prioritize data privacy, security, consent, and user control, ensuring the protection of users’ financial information.
Google’s foray into the credit market is seen as a significant move to promote financial inclusion in India. By offering sachet loans and other credit products, Google Pay aims to make formal credit more accessible to a broader audience, including those with lower incomes.
The company is also committed to safeguarding user privacy. A spokesperson from Google stated, “By digitising credit with privacy safeguards, the platform intends to expand the reach of formal credit, catering to a broader audience with lower incomes.”
In addition to its credit offerings, Google is also taking steps to combat sophisticated financial scams in the digital sphere. The company has unveiled its flagship program, DigiKavach, an early threat detection and warning system.
DigiKavach is designed to identify and analyse emerging financial fraud patterns and swiftly implement effective countermeasures to prevent widespread harm caused by bad actors online.
Google’s initiatives in the credit and financial security space are seen as positive steps towards promoting a more inclusive and secure digital ecosystem in India.