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Chinese smartphone maker Xiaomi on Tuesday announced the launch of its digital credit application in India, marking its foray into the lending market that has already seen a slew of start-ups come up in the last few years.
Xiaomi, which has quickly become India’s top smartphone brand through its affordable and quality offering, said Mi Credit, a marketplace for loans, had been running in pilot mode in the country and had helped disburse over INR 28 crore last month.
Users can also instantly check their credit score on the app, a feature powered by consumer credit reporting firm Experian.
Mi Credit is Xiaomi’s second Mi Finance product in India, having previously launched its payments app Mi Pay.
Expansion to India
Xiaomi began its financial services business in its home nation in 2015.
“Today, we have over 300 million Mi Fans in our global community and having understood their consumption behaviour - it is one of the strengths we aim to leverage to build a stronger Mi Finance business globally,” Xiaomi’s co-founder Hong Feng said in a statement.
According to a BCG report published last year, the digital footprint of people requiring financial services would increase to 75 per cent from 50 per cent between 2018 and 2023, owing to the staggering growth of smartphones and internet services. The report stated that the digital lending market in India is expected to exceed $1 trillion by 2023.
“We see a huge opportunity for consumer lending in India,” Feng said.
Mi Credit, at present, services 1,500 pin codes across the country, and the company aims to expand its availability to all pin codes - more than 19,000 - by the end of this current fiscal year.
How It Works
Currently, lending partners were primarily fintech companies or non-banking financial institutions, the company said. Some of its partners include Aditya Birla Finance, Money View, EarlySalary, Zestmoney and CreditVidya.
Those using the app for the first time need to fill a digital application form, which the company claims should take five minutes, while repeat customers can avail a loan with a single click.
The loan is said to be approved within minutes, with users then getting the option to choose an amount and the tenure.