Xiaomi enters India’s online lending space with Mi Credit
By launching another financial service in the Indian market after Mi Pay, internet technology company Xiaomi will facilitate online lending with its new Mi Credit offering. The new financial service is an organized online marketplace for loans that the company says will offer personal loans up to Rs 1 lakh, to start with. Accessible through Mi Credit, the app can be downloaded from Google Play Store and GetApps (Xiaomi’s app store) and will also come pre-installed on all MIUI phones.
Manu Jain, Vice President of Xiaomi and General Manager of Xiaomi India, said: “In India, the lending industry is on an explosive trajectory. According to a recent report by CIBIL, there are over Rs 4 lakh crore of personal loans outstanding from nearly 1.9 crore Clients with each user representing an outstanding amount of almost Rs 2 lakh. Of those clients of 1, 9 crore, the majority tend to take it for medical emergencies followed by shopping, weddings, travel and education. We are bringing Mi Credit to India in the hope of providing another innovative and truly digital solution for their credit needs. “
After China, India is the second country to launch Mi Credit. The service started as a pilot in the third quarter of 2019 in India and serves over 10 states covering 1,500 PIN codes. The company aims to expand its availability to more than 19,000 PINs by the end of fiscal year 2019/20. Loans of over 28 crore rupees were already disbursed in November 2019, with more than 20% of users having received the highest loan amount of Rs 1 lakh. Xiaomi’s Mi Finance business started four years ago in China.
Claiming to solve most of the challenges associated with the traditional lending industry, Mi Credit is a 100% digital experience. The concept behind Mi Credit is to offer a simple application process for getting loans with an intuitive interface. The app has a digital application form that needs to be completed along with uploading the necessary documents. Once the loan is approved, in a matter of minutes the consumer has the option of choosing the amount and the length of the loan. The digital advantage is also manifested in real-time loan disbursement and lower interest rates. Xiaomi says that since Mi Credit is designed as a platform with multiple loan partners, it guarantees a higher success rate with a higher loan amount at a lower interest rate than any other existing solution on the market. All user data on Mi Credit will be stored securely in an encrypted format in India through Amazon Web Services Cloud Infrastructure.
Hong Feng, Co-Founder and Senior Vice President of Xiaomi Corporation and Chairman and CEO of Xiaomi Finance, said, “We are committed to being the full financial partner of our global Mi Fan community, our retail partners and the global community. manufacturing industry. Today we have over 300 million Mi Fans in our global community and having understood their consumer behavior we aim to leverage this to build a stronger Mi Finance business globally We see a huge opportunity for consumer lending in India with estimates reaching up to $ 1,000 billion in digital loans by 2023, according to a BCG report. This makes us believe that our Mi Finance business, based on solutions like Mi Pay and Mi Credit, can truly revolutionize the Indian FinTech industry.
Xiaomi also allows Mi Fans to check their credit score instantly on the app for free. This is powered by Experian, a global leader in consumer and business credit reporting.
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