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Forget Cibil! Paytm invests in CreditMate to bring urgent loans in a jiffy

Customers can get credit limit ranging from Rs 3,000 to Rs 10,000, which can be extended to Rs 20,000 based on their usage

Karan Choudhury  |  New Delhi 

Paytm hits record 5 mn transactions a day

Fintech major has acquired a stake in CreditMate, a Mumbai-based start-up in the lending space that enabling its dealer partners to seamlessly assess, approve, process and distribute two-wheeler loans to customers with no formal credit history. With this investment, hopes to provide loans for cars, appliances, medical treatment, emergency loans among others. 

will leverage CreditMate's proprietary credit and asset valuation technology to create a management system in collaboration with its lending partner for its customers.

With expanding its services and entering various areas of financial tech, it will offer instant access to credit based on transaction history and not necessarily the The company will continue to innovate new financial products to drive financial inclusion in India.

"intends to change the course of the Indian financial ecosystem by enabling hundreds of millions of deserving consumers to avail long-term credit based on a proprietary management system that will cover small-scale entrepreneurs and self-employed individuals. We believe that will be a valuable and long-term partner towards our effort to cater to the unorganized sector to bring inclusive financial services for the masses. About 65 per cent of customers are already users. Over time, we will use CreditMate's platforms to make credit available both offline and online to our users", Madhur Deora, SVP & CFO, said.

recently introduced an interest-free short-term credit 'Postpaid', offering its users an instant credit based on their transaction history on the platform.

Customers can get ranging from Rs 3,000 to Rs 10,000, which can be extended to Rs 20,000 based on their usage. Postpaid offers up to 45 days of interest-free credit to customers who want instant cash for everyday use-cases ranging from movies, utility bill payments, school fees, flight bookings and e-commerce transactions. 

'This will allow us to expand our operations, distribution, lending partnerships and technology investment to help a wider set of consumers to access and leverage this key life-enhancing asset' Jonathan Bill, Co-Founder and CEO, said.

has in the last one year made a number of investments. It acquired a majority stake in, India's leading ticketing platform for events and properties, including NH7 Weekender, EDC and The Grub Fest. 

It also invested in Mobiquest Mobile Technologies, a Noida based start-up in the mobile loyalty and space. 

First Published: Wed, November 22 2017. 12:13 IST