Not just phones, Xiaomi may soon offer gold loans and credit cards in India

Xiaomi has offers such as gold loans, credit cards and insurance products as it seeks to provide the full range of payment, loan and insurance financial services in India, said its Indian director Manu Jain.

Talk with PTI, Jain said these financial services will be offered in partnership with organizations like Axis Bank, IDFC Bank, Aditya Birla Finance Ltd, Stashfin, Money View, Early Salary and Credit Vidya.

He said Mi Credit, an organized market for personal loans up to Rs 1 lakh, has seen a lot of euphoria in 2019 and more than a lakh of loans have already been disbursed.

However, when the pandemic struck, its lending partners took a step back.

“Many quarters have been spent rethinking the future of Mi Credit or Mi Financial Services. We are now back to growing this particular platform. Q1 2021 compared to Q4 2020 we have grown by 95% and Q1 2021 compared to Q1 2020, we recorded a growth of 35% “, he added.

Read | Xiaomi will launch a new line of IoT devices this month

Jain pointed out that the company is working on building a full spectrum platform when it comes to overall financial services as well as the credit outlook.

He said Xiaomi is adding vertical insurance to its platform and expanding the category of loans with the addition of offers such as gold loans and credit cards.

The senior executive said Mi Credit will now offer a higher pre-approved loan of Rs 25 lakh (compared to Rs 1 lakh previously) and an tenure period of up to 60 months.

In addition, the company has also started offering SME loans and credit cards.

“Mi Credit, in partnership with Stashfin, launched the Credit Line cards.

“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.

Another service that will be launched in the coming weeks is gold lending, he added.

Jain said 40 percent of users of the company’s credit products are self-employed and the remaining 60 percent 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.

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.

Speaking of the insurance segment, Khandelwal said that Xiaomi has partnered with ICICI Lombard to organize a health insurance product.

This was piloted in July and will continue to be offered.

Xiaomi also offers a cyber insurance offer and more than 25,000 customers have been covered so far.

“In the future, insur-tech is another proposal on which we are working in an organized way in the framework of partnerships”, he added.

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