After test running the pilot programme in India, China’s Xiaomi has announced Mi Credit, its digital lending solution in India. Mi Credit is the second finance solution to be launched in the country after Mi Pay.
In November, Mi Credit has already disbursed loans of over 28 crores, with over 20 per cent of the users availing loan of Rs 1 lakh. Presently, Mi Credit services are operational in more than 10 states spanning across 1,500 pin codes, and the company aims to expand its availability to 100 per cent of the pin codes by the end of FY2019.
For disbursement of loans via Mi Credit, Xiaomi has partnered with NBFCs or Fintechs such as Aditya Birla Finance Limited, Money View, EarlySalary, Zestmoney and CreditVidya. First time users can complete the digital application form and once the loan is approved, consumer has the option to choose the amount and the tenure of the loan.
‘Since Mi Credit is designed as a platform with multiple lending partners, it ensures higher success rate, with higher loan amount at a lower interest rate than any other existing solutions in the market,’ the company said.
Mi Fans can also check their credit score instantly on the app, for free, a service which is powered by Experian. All the user data on Mi Credit is stored securely in encrypted format in India through Amazon Web Services Cloud Infrastructure.
Xiaomi India and Managing Director and Vice President Manu Jain said that “in India, the lending industry is on an explosive trajectory. We are bringing Mi Credit to India hoping to provide yet another innovative and truly digital solution for their lending needs.’
In March of 2018, Xiaomi announced Mi Pay, which is a UPI based payment app available on all MIUI phones. Within nine months, the Mi Pay has 20 million registered users.