Money & Banking

PayPoint India signs pact with banks, NBFCs for lending services

Our Bureau Mumbai | Updated on June 18, 2021

The company to access remote locations and generate leads for housing, personal and business loans

PayPoint India, a technology-enabled distribution network of financial services, intends to add lending vertical to its portfolio of services for which it has signed agreements with 12 financial institutions.

The Mumbai-based company has signed ‘lead generation agreements’ with Punjab National Bank, ICICI Bank, Deutsche Bank and NBFCs such as Bajaj Housing, Piramal Housing and Hero Fincorp, among others and is close to entering into a similar agreement with State Bank of India.

“We intend bring loans to the underserved and last mile using technology, by partnering with banks and NBFCs to generate leads for housing, personal and business loans. We will help the financial institutions access remote locations which they are unable to reach on their own, and provide capital to the last mile through the aggregation model,” Ketan Doshi, Managing Director at PayPoint India said.

According to RBI data, businesses have only borrowed about ₹94,000 crore (in business loan category of ₹1-10 lakh), which is low compared with the country’s GDP, he said, adding, the company intends to address this gap.

The firm is also looking to increase its touch points to about 1.5 lakh from the present 60,000 in the next three years.

PayPoint India would be also introducing two more products – an investment related Systematic Investment Plan and inter-operable wallets (in which cash can be loaded at the retail touch points) – to its service bucket.

The company, boot-strapped in 2008, currently has 40 million transactions annually and touches 7 million customer lives.

“We see ourselves growing at 40 per cent CAGR for next three years and are evaluating fund-raising for our aggressive expansion plans."

PayPoint had earlier offered a complimentary personal accident insurance cover for migrant workers transferring money to their families.

Published on June 18, 2021

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