New Delhi, 14 Jan (KNN) The UPI transaction giant, Google Pay has partnered with Indifi Technologies to lend instant loans to MSMEs to spread its reach in the financial services across the country.

The loans will be set at a range of INR 2.5 to INR 3 lakh.

Speaking on this development, the Director of Product Management at Google Sharath Bulusu said, “The MSME sector in India needs access to reliable credit which is even more imperative due to the drastic change in the basics of economic because of the pandemic.”

PhonePe and Paytm, too, offer various financial services through their platforms.

UPI attracts a Zero-Merchant Discount Rate (MDR) as mandated by the government, meaning merchants cannot be charged any fees for accepting transactions through this mode.

MDR is the key source of revenues in payments and, with that at zero, payments companies are monetizing by cross-selling mutual funds, stockbroking, insurance and credit services to customers on their apps.

Most fintechs are bullish on credit, both for individuals and MSMEs, on the back of the large credit appetite in India in contrast to the low penetration.

“We are committed to making reliable credit easy and convenient for more than 10 million merchants who use the Google Pay for Business app. Our collaboration with Indifi is a great step in this direction,” Bulusu added.

Aditya Harkauli, Chief Business Officer, Indifi said, “Our collaboration with Google Pay is another step in direction to secure the loan, eligible merchants on the Google Pay for Business app will see loan offers from Indifi which they can click to complete an online application.”

After submitting the application, Indifi will review the application and an instant credit decision will be made.