Shriram Finance partners with Paytm for digital credit for small merchants

CHENNAI: Shriram Finance Limited has partnered with leading payments and financial services company Paytm to offer digital credit for small merchants.

The first pact by the country's largest retail asset financing, Shriram Finance, in the digital lending space will be extended to consumer loans in the future.

Through this partnership, Shriram Finance’s products will be made available on Paytm’s platform.

Briefing reporters in Chennai on Friday, Vijay Shekhar Sharma, founder and CEO, Paytm, said, “Small merchants are the backbone of the economy. They necessarily do not have lot of assets and documents on the back of which Shriram has been funding them. Together with us, Shriram Finance will be able to disburse many, many more loans."

Bhavesh Gupta, president and COO, Paytm, said, Paytm has 3.4 crore merchants, of whom 75 lakh have sound box facility. "The ticket size of the loan (under the pact with Shriram) ranges anywhere between Rs 25,000 and Rs 2 lakh," he said.

Umesh Revankar, executive vice chairman - Shriram Finance Ltd, said the rate of interest on the digital credit would range from 12% to 18%.