In a significant announcement, Google India, under the leadership of Sundar Pichai, has unveiled its ambitious plans to enter the retail loans business during the 9th edition of the ‘Google for India 2023’ annual event held at Pragati Maidan, New Delhi, on October 19. This move is set to further bolster Google’s presence in the Indian financial landscape and aid small businesses with accessible credit options.
Google’s Financial Focus: Sachet Loans for All
At the heart of Google India’s announcement are a series of credit-focused products designed to serve both consumers and merchants. A standout offering is the introduction of “sachet loans” within India. These loans are characterized by their small loan sizes and short repayment tenures, making them highly accessible to a broad spectrum of borrowers.
To make these sachet loans easily available, Google India has forged partnerships with banks and non-banking financial companies (NBFCs). This initiative is poised to bridge the credit gap in the country, making financial services more inclusive.
Empowering Small Businesses with Sachet Loans
For small businesses, often challenged by capital requirements, Google Pay is offering sachet loans through a collaboration with Delhi-based NBFC DMI Finance. These loans are set to start at a modest Rs 15,000, with affordable EMIs commencing as low as Rs 111. This move is geared towards providing the much-needed financial impetus for small businesses to thrive and expand.
Collaboration with Leading Financial Institutions
Google India’s financial foray doesn’t stop there. The company has also introduced credit lines on the Unified Payments Interface (UPI) in conjunction with payment service providers HDFC and ICICI Bank. This development is complemented by a strategic partnership with Axis Bank, expanding the range of personal loans available through Google Pay.
The Vision for Financial Inclusion
These financial products offered by Google India are backed by regulator-authorized financial institutions, ensuring security and reliability for users. This initiative builds upon Google Pay’s earlier partnership with small business-focused lending platform Indifi, which aimed to source new lending opportunities from merchants.
Digital Pragati: A Vision for Economic Growth
The introduction of sachet loans and other financial offerings by Google Pay aligns with its Digital Pragati initiative, which seeks to foster economic opportunities for every Indian. With over ₹167 lakh crore processed through UPI in the past year, digital transactions are gaining significant momentum in India. It is worth noting that most of the loans disbursed through Google Pay are directed towards borrowers with monthly incomes of less than ₹30,000, particularly in tier 2 towns and beyond.
A Commitment to Financial Growth
With more than 350 million Indians actively engaging in digital transactions, Google Pay is proud to have played a pivotal role in the success of UPI. The company remains committed to collaborating with the Reserve Bank of India (RBI), National Payments Corporation of India (NPCI), and its financial ecosystem partners to further strengthen digital payments and financial inclusion in India.
In summary, Google India’s entrance into the retail loans business, exemplified by the introduction of sachet loans and collaborations with leading financial institutions, underscores the company’s commitment to empowering small businesses and contributing to India’s evolving digital payment landscape. This financial inclusion initiative aligns with Google Pay’s broader vision of fostering economic growth and opportunity for all Indians.
Steps to Secure a Google Pay Sachet Loan
Securing a Google Pay Sachet Loan is a straightforward process, ensuring convenience for borrowers. Here’s how you can get started:
Step 1: Download Google Pay If you don’t already have it, download the Google Pay app from the Google Play Store or Apple App Store.
Step 2: Set Up Your Account Open the app and set up your account, following the on-screen instructions. Ensure your account is linked to your mobile number and email for seamless communication.
Step 3: Verify Your Identity Complete the identity verification process as required by Google Pay. This may include providing personal information and verifying your identity.
Step 4: Check Loan Eligibility Within the app, you can check your eligibility for a sachet loan. Google Pay may require specific information to determine your eligibility, such as your financial history and transaction records.
Step 5: Select Loan Amount Once your eligibility is confirmed, you can select the loan amount you need. Remember, sachet loans start at Rs 15,000, making it ideal for various financial needs.
Step 6: Review Terms and Conditions Before finalizing your loan application, review the terms and conditions provided by Google Pay. Ensure you understand the repayment tenure and interest rates associated with the loan.
Step 7: Submit Loan Application If you agree with the terms and conditions, submit your loan application through the app. Your request will be processed swiftly.
Step 8: Loan Approval and Disbursement After your loan application is approved, the funds will be disbursed directly into your bank account linked to Google Pay. You can expect rapid loan approval and disbursement, thanks to the digital nature of this service.