Xiaomi has offers such as gold loans, credit cards and insurance products as it seeks to provide the full range of payment, loan and insurance financial services in India, said its Indian director Manu Jain.
Speaking to PTI, Jain said these financial services will be offered in partnership with organizations such as Axis Bank, IDFC Bank, Aditya Birla Finance Ltd, Stashfin, Money View, Early Salary and Credit Vidya.
He said Mi Credit, an organized market for personal loans up to Rs 1 lakh, in 2019 has seen a lot of euphoria, and more than a lakh of loans have already been disbursed.
However, when the pandemic struck, its lending partners took a step back.
âMany quarters have rethought the future of Mi Credit or Mi Financial Services. We are now back to growing this particular platform. In the first quarter of 2021 compared to the fourth quarter of 2020, we increased by 95%, and in the first quarter of 2021 compared to the first quarter of 2020, we recorded a growth of 35%, âhe added.
Jain pointed out that the company is working on building a full spectrum platform when it comes to overall financial services as well as the credit outlook.
He said Xiaomi is adding vertical insurance to its platform and expanding the category of loans with the addition of offers such as gold loans and credit cards.
The senior executive said Mi Credit will now offer a higher pre-approved loan of Rs 25 lakh (compared to Rs 1 lakh previously) and a maximum term of 60 months.
In addition, the company has also started offering SME loans and credit cards.
âMi Credit, in partnership with Stashfin, launched the Credit Line cards.
“This is a unique product that comes with an offer to buy it now and pay later combined with a personal loan to allow the customer to use the offer on all channels without any limitation. “said Ashish Khandelwal, Director of Financial Services, Xiaomi India.
Another service that will be launched in the coming weeks is gold lending, he added.
Jain said 40 percent of users of the company’s credit products are self-employed and the remaining 60 percent are employees.
âIn 2021, we plan to diversify further and provide 20% of loans to MSMEs (micro, small and medium enterprises).
We have launched business loans to meet the emerging needs of entrepreneurs and MSMEs, âhe added.
Xiaomi’s Mi Pay service, launched in 2018, had reached 20 million registered users in one year. This number has now exceeded 50 million users. Speaking of the insurance segment, Khandelwal said that Xiaomi has partnered with ICICI Lombard to organize a health insurance product.