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Paytm resumes lending with two partners, in talks with Muthoot Finance: Report
This comes almost two months after Paytm halted new loan disbursements as its partner banks and NBFCs sought more clarity on RBI’s directive regarding PPBL.
Paytm resumed lending activities after a temporary pause of almost two months starting with merchant loans in partnership with SMFG India Credit (formerly Fullerton) and Shriram Finance, Moneycontrol reported citing people in the know. Talks are also underway to onboard a new lending partner, Muthoot Finance, for both personal and merchant loans, the report added.
An unnamed source told the outlet, “It resumed around March 21. Over 500 crore loans have been disbursed so far, which includes both top-ups from existing merchants and some new loans.”
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This comes almost two months after Paytm halted new loan disbursements as its partner banks and NBFCs sought more clarity on RBI’s directive regarding Paytm Payments Bank Limited (PPBL).
"SMFG was Paytm’s biggest lending partner in terms of AUM (Assets Under Management). Almost 50 percent of disbursements came from it previously. So, getting it back on the block is a big relief for Paytm. But others (lending partners) are yet to catch up," a senior executive in banking partnership said as per the report.
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The report also said that partners of the company are remaining cautious and adopting a "wait and watch" approach while the company's website notes that Paytm has tie-ups with Piramal Finance, Clix Capital, Aditya Birla Finance, Hero FinCorp, Poonawala Fincorp, among others.
Sources told Moneycontrol, “A lot of lenders are cautious. They want to look at the fund flow and trace of PPBL in the same. They are yet to make a decision on the partnership while continuing to verify books and product systems to ensure everything is in order. It’s still a wait-and-watch game for lenders before they start with new loans.”
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What Paytm said on the report?
Paytm told the outlet that it continues to hold partnerships with its existing lenders.
"Our lending business continues to expand with a diverse range of existing and new partners, each contributing to our growth based on their own scale and plans," the Paytm spokesperson said.
