Paytm raises collateral-free loan cap to Rs 5 lakh for micro lenders

The company offers collateral-free loans under its Merchant Lending Programme in Paytm for Business app

Sharpening its focus on the merchant lending business, financial services platform Paytm aims to double its loan disbursements this financial year to Rs 1,000 crore from Rs 550 crore disbursed in FY20. It has also expanded collateral-free loans cap from Rs 2 lakh to up to Rs 5 lakh at a low-interest rate of 1-2 per cent micro-merchants.

“With our collateral-free instant loans, we are trying to help kirana stores & other small business owners who have been left behind by the traditional banking sector and do not have easy access to loans and credit. Going forward, we will especially