Paytm is trying to put financial inclusion deeper in our country by enabling collateral-free loans of up to Rs. 500,000 at a low-interest rate and unique daily EMI product customized for micro-merchants. As per Bhavesh Gupta, CEO — Paytm Lending said, “With our collateral-free instant loans, we are trying to help Kirana stores & other small business owners who have been left behind by the traditional banking sector and do not have easy access to loans and credit. Going forward, we will especially focus on EDC merchants and provide higher loan amounts based on their EDC transactions" How do they give loans instantly? 1. Their algorithm determines the credit-worthiness of the merchant based on his daily transactions and arrives at a pre-qualified loan offering. 2. They have digitized the entire process starting from the loan application, approval to disbursal with no additional documents required in partnership with NBFCs and banks. 3. Loan repayment is primarily collected from the merchant’s daily settlement with Paytm and there are no prepayment charges on these loans. In the last financial year, Paytm has processed loans worth Rs. 550 crore benefiting over a lakh merchant partner.