Xiaomi plans to expand its presence in the country’s credit market with the help of offers such as gold loans, credit cards. The company is also planning to introduce insurance products.
Xiaomi India chief Manu Kumar Jain, in an interview with PTI, shared some details on the upcoming financial services planned by the Chinese company. Jain claimed that they would offer these financial services in partnership with organizations like Axis Bank, IDFC Bank, Aditya Birla Finance Ltd, Stashfin, Money View, Early Salary and Credit Vidya.
The company first launched its Mi Credit micro-credit offering in 2019 and since then the company claims to have disbursed more than a lakh in loans. The maximum credit available through Mi Credit is ??1 lakh. However, last year’s pandemic had an impact on investor participation.
Jain explained, âMany quarters have re-thought the future of Mi Credit or Mi Financial Services. We are now back to the growth of this particular platform. Q1 2021 compared to Q4 2020 we have increased by 95 % and Q1 2021 compared to Q1 2020, we recorded growth of 35%. “
Jain claimed that Xiaomi is working on building a full spectrum platform when it comes to overall financial services as well as the credit outlook.
Xiaomi will not only expand its lending business through gold loans and credit cards, but it is also entering the insurance industry which has gained a lot in popularity since the Covid outbreak in 2020.
Jain claimed that Mi Credit will now offer a higher pre-approved loan of ??25 lakh (against ??1 lakh previously) and a term of up to 60 months. In addition, the company has also started offering SME loans and credit cards.
Mi Credit credit cards will be introduced in partnership with Stashfin.
“This is a unique product that comes with an offer to buy it now and pay later combined with a personal loan to allow the customer to use the offer on all channels without any limitations. “said Ashish Khandelwal, Director of Financial Services, Xiaomi India.
Khandelwal says the gold lending service is expected to launch in the coming weeks.
Manu Jain said 40% of the company’s credit product users are self-employed and the remaining 60% are employees.
“In 2021, we plan to further diversify and provide 20% of loans to MSMEs (micro, small and medium enterprises). We have launched business loans to meet the emerging needs of entrepreneurs and MSMEs,” he said. -he adds.
According to the head of the company, Xiaomi’s Mi Pay service, launched in 2018, had reached 20 million registered users in one year. This number has now exceeded 50 million users.
For insurance, Xiaomi has teamed up with ICICI Lombard to organize a health insurance product. This was piloted in July and will continue to be offered.
Never miss a story! Stay connected and informed with Mint. Download our app now !!