Many people use Paytm. If you need to recharge or pay a bill, the first choice for many is Paytm.
Considering what customers need, the company started offering personal loans.
Now, Paytm has decided to make some changes, and they’ve announced this in a statement.
Paytm is making significant changes to its Buy-now-pay-later (BNPL) service, which initially started as Paytm Postpaid.
The company will now focus more on providing larger loans and will avoid giving smaller ones.
This means they will concentrate on giving personal loans and merchant loans in substantial amounts.
The company stated, ‘Loans were a part of our postpaid product, and we used to provide loans below Rs 50 thousand.
Now, we are reducing the number of smaller loans and shifting our focus entirely to larger personal loans.
We are making this decision with the users in mind, as recent trends indicate a greater need for larger loans.’
According to reports, about 70% of postpaid loans were below Rs 50 thousand.
This decision comes at a time when the Reserve Bank of India has advised banks and NBFCs to be cautious about risky business practices.
Paytm was collaborating with Hero Fincorp, Aditya Birla Capital, Piramal Finance, and Clix Capital for these services.
If you are planning to take a loan, especially during Raksha Bandhan, you should pay more attention to larger loan amounts.
In the past, people used to take loans to pay bills, including high electricity bills. However, Paytm’s recent changes suggest a shift in this trend.
