Paytm Joins Hands With Shriram Finance To Boost Loan Distribution Business Through this joint venture, Shriram Finance products would be made available on the digital platform to further expand Paytm's business to credit services as well, and drive financial inclusion

One97 Communications, parent company of the fintech platform Paytm, announced that it has partnered with Shriram Finance Ltd, a retail non-banking finance company to offer financial services to its users, including loan products.

As per available reports, through this joint venture, Shriram Finance products would be made available on the digital platform to further expand Paytm's business to credit services as well, and drive financial inclusion. Also, with its technology-led lending, Paytm has strengthened the credit ecosystem by partnering with marquee financial institutions to digitally distribute loans.

"India is witnessing high growth in retail credit demand, it is only likely to increase with greater participation from rural and semi-urban India. A lot of this demand will come from digitally literate, young generation brought up in mobile telephone proliferation era and those having comfort in having all their transactions through handheld devices," Umesh Revankar, executive vice-chairman, Shriram Finance, commented on the development.

Merchants on the Paytm network would get a chance to avail loans from Shriram Finance and then it would be extended to consumer loans. Powered by Paytm's fintech leadership as a loan service provider (LSP) focussed on compliance and quality of loans, this partnership will integrate Shriram Finance wide geographical presence across the country especially rural areas, the official statement added.

"Our commitment to expand credit distribution gets further boost with our new strategic partner Shriram Finance. We are happy that together we will be able to create credit offerings to serve small merchant partners and entrepreneurs of India," said Vijay Shekhar Sharma, founder and CEO, Paytm.