Paytm offers loans up to Rs 2 Lakh within 2 minutes: Get full details here

Paytm has launched new Instant Personal Loans on its platform to facilitate access to credit services to its 1 million customers.

"Paytm is the technology & distribution partner for non-banking financial companies (NBFCs) and would help them expand the reach and adoption of loan services to salaried individuals, small business owners, and professionals,"

Paytm said during the launch. The loans would be processed and disbursed by NBFCs and banks.

The service, which is active 24x7, for 365 days a year, allows users to get a loan in less than 2 minutes.

The service can also be availed on public holidays and weekends, Paytm said during the announcement.

Paytm has digitised the entire process for loan application and disbursal with no physical documentation required. This service proposition is built on Paytm's tech platform that enables banks and NBFCs to process loans end to end in less than 2 minutes.

Under the new Instant Personal Loan scheme, Paytm will offer instant loans of up to Rs. 2 lakhs to salaried individuals, small business owners, and professionals.

According to Paytm, this will bring 'new to credit' customers into the ambit of the formal financial market, and will also empower individuals from small cities and towns who do not have access to traditional banking institutions.

Paytm also said that its loan service comes with a flexible repayment tenure of 18-36 months and EMI is determined according to the tenure.

Eligible customers can avail of the service through the ‘Personal Loan’ tab under the Financial Services section and can manage their loan account directly from the Paytm app. The company has partnered with various NBFCs and banks to facilitate this service. During the beta phase, Paytm disbursed personal loans to over 400 selected customers. The company is now aiming for over 1 million users by fiscal year-end to avail the personal loan services from the platform.