Mobile payments and commerce platform Paytm said it has tied up with financial institutions to facilitate collateral-free working capital loans of up to ₹1lakh for small merchants and service providers like kirana store owners and auto drivers.
Paytm will pass on the credit profile, which is based on transaction history of the merchants on its platform, to third-party financial institutions, including Capital Float, Aditya Birla Finance and Capital First, for eligibility screening.
Regulations in India do not allow ecommerce marketplaces or payments bank to disburse loans, which is prompting the company to tie up with institutions.
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