Google for India 2023: Google has announced the introduction of digital credit services in India in order to tap its large market base of loan demand. The tech giant has revealed products tailored for consumers and merchants in order to help address both the organised and unorganised sector.
In a blog post amid the Google for India 2023 event, Google said, “From paying for a device toward a child’s education, to accessing funds for kick starting a home business, quick access to responsible credit can help millions turn their life around. Where only 1 in 5 credit eligible users in India currently get access to formal credit, many have no recourse but to turn to informal lenders and often get mired by exorbitant interest rates.”
“Responsible credit is the solution, but only a small section of people in India can get formal credit as it requires a high threshold income and cumbersome paperwork. This excludes millions of eligible but underserved Indians with lower incomes and fewer assets from the economic opportunities that unlock with formal credit.”
Here’s what Google has announced for India;
Merchant Offerings
Merchant credit line, powered by ePayLater
Google Pay is enabling a credit line for merchants in partnership with ePayLater. This product will help solve the working capital requirements of merchants. Merchants can use this line across all online and offline distributors to buy their stock and supplies and grow their business.
Sachet Loans, powered by DMI Finance
Merchants often require smaller ticket loans and simpler repayment options. To address this, Google Pay is enabling on its platform, sachet loans in collaboration with DMI Finance. These start as low as Rs 15000, and can be repaid with repayment options starting at just Rs 111. This offering is aimed at bringing ease and convenience to SMBs.
Expanding the portfolio of merchant loans
On the merchant side, Google has announced a new partnership with ICICI Bank & seamless repeat loans powered by Indifi.
Consumer Offerings
Expanding the portfolio of personal loans on Google Pay with Axis Bank
For the past few years, Google Pay has been offering personal loans through its partnership with DMI Finance. Now, the range of available personal loans on Google Pay is broadening as Axis Bank joins in, providing its personal loans on the platform. Additionally, more partners are expected to follow suit in the near future.
Credit on UPI
Earlier this year, Google Pay introduced the capability to link Rupay credit cards to the application, enabling users to effortlessly conduct transactions through UPI.
Expanding on this feature, in partnership with its payment service provider ICICI Bank, Google Pay users can now access credit lines from banks on UPI. They can utilise these credit lines to make payments through Google Pay, mirroring the seamless experience of UPI transactions.
Google added that just like UPI revolutionised digital payments, digitising credit – with consent and privacy safeguards – can provide ways of expanding the reach of formal credit. And the lower transaction cost of digital credit delivery can enable smaller minimum ticket loan sizes, making it more suitable and approachable for more borrowers.
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