Xiaomi Offers Loan of Rs 1 Lakh via Mobile With Mi Credit in India

The latest offering from Xiaomi is available to mobile users, who can get quick processed loans with ease.

Published03 Dec 2019, 11:01 AM IST
Tech News
2 min read

Xiaomi has been selling mobiles, TVs and even shoes in India, but now the company is entering the lending service sector with Mi Credit. Xiaomi claims its platform could become a convenient spot for millennials and young working professionals to get personal loans without any hassle.

For this, Xiaomi has partnered with companies like Aditya Birla Finance Limited, Money View, EarlySalary and ZestMoney among others. The company is offering Mi Credit through its suite of apps, that also lets users get their credit rating scores for free.

As highlighted by Manu Kumar Jain, Managing Director, India, users will be able to loans for up to Rs 1 lakh which is most likely to be used for medical emergencies, shopping, travel or even education courses.

Highlights of Mi Credit:

  1. Credit up to a lakh
  2. Loan approval in less than 5 minutes
  3. You need proof of address, pan card, bank details
  4. Choose from flexible repayment options
  5. For safety, user data stays within India in encrypted form

To get the process started, you have to share details like PAN number, proof of address and bank account number. The registration is not expected to take more than five minutes, as Xiaomi mentioned at its event on Tuesday.

Xiaomi claims that compared to traditional banks, Mi Credit will provide higher amount of loan at lower interest rates. It does support all the major banks in India, so that should increase the chances of getting the required loan.

Xiaomi Offers Loan of Rs 1 Lakh via Mobile With Mi Credit in India
(Photo: Mi Credit app screen grab)

As you can see from the above clips, the Mi Credit apps seeks your banking-related details, as well as take selfie as the photo verification method, which might not be the best idea, for a non-banking entity to adopt.

it claims to offer loan with interest as low as 1.35 percent per month, but that translates to 16.2 percent annually, which is not very different from what the traditional banks offer for personal loans.

So, why is Xiaomi, a mobile brand, entering the credit lending sector in India? According to a Boston Consulting Group report, quoted by Manu Kumar, the online credit lending space is expected to become a Rs 70 lakh crore market in India by 2023.

And with the smartphone market nearing its saturation point, the company is eyeing more sectors for its growth in the country.

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