 "Paytm denies claims on its lending partners invoking loan guarantees")
One97 Communications, the company operating under the Paytm brand, has denied reports suggesting that its lending partners have invoked loan guarantees provided by the company due to customer repayment defaults.
The Noida-based company clarified that it does not offer a First Loss Default Guarantee (FLDG) or loan guarantees to its lending partners.
“Paytm acts as a distributor of loans and does not provide a First Loss Default Guarantee (FLDG) or other loan guarantees to lending partners. Therefore, claims about invoking loan guarantees due to repayment defaults by our partnered lenders are inaccurate,” the company stated in an exchange filing.
Paytm’s non-bank lending partners include companies such as Aditya Birla Finance, Hero Fincorp, Piramal Capital, Poonawalla Fincorp, Shriram Finance, SMFG India Credit, and Tata Capital.
“We continue to collaborate with multiple banks and non-banking financial companies (NBFCs), ensuring a diversified lending partnership network while strictly adhering to risk and compliance,” the company added.
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