BharatPe, India’s largest merchant payment network, today announced that it has recorded disbursal of over Rs 80 crores in the month of September 2020, making it the largest fintech lender for merchants in India during the pandemic. The company has facilitated loan disbursals to the tune of Rs 150 crores through its partners in the current quarter. BharatPe also announced that it has ambitious plans of increasing the number of loan disbursals by 7x this year and would disburse loans worth Rs 1,000 crores in the rest of the FY21.
At a time when collateral-free business loans are difficult to avail from other financial institutions, BharatPe’s success in lending has been fuelled by its sachet-sized daily repayment mechanism that it enables through its UPI QR codes. Existing merchants can avail collateral-free loans of up to Rs 7 lakhs at low interest rates and with minimal paperwork. Additionally, the company’s newly launched BharatLoan product has received an unprecedented response from the merchant community. This new lending product allows creditworthy merchants to avail loans via a 100% digital and automated process. With BharatLoan, the merchant also has the option to go for a hybrid repayment model with a combination of daily QR/POS collection and weekly payments made directly from the bank account.
Speaking on the success of the lending business, Mr Nishit Sharma, Chief Revenue Officer, BharatPe said, “Small and medium-sized retail businesses are bouncing back and prepping for the festive season ahead. BharatPe is leading from the front and helping the merchant community with much needed access to credit. Our proprietary algorithm designed to assess merchant creditworthiness, combined with a multi-modal collection mechanism, is the backbone of our lending product. BharatPe intends to be the fintech partner of choice for Indian merchants and will continue to launch new products that enable them to grow their businesses.”
BharatLoan allows merchants to avail loans in the range of Rs 20,000 to Rs 7 lakhs for up to 15 months tenure, at competitive interest rates. The merchants can repay the loan in the form of small daily or weekly instalments. The company’s lending products have an end-to-end digital processing – from applying to uploading documents to loan confirmation. Merchants can apply for loans on the BharatPe app without risking venturing out.