After Xiaomi, another Chinese smartphone manufacturer Realme has entered India's financial services sector with the launch of Realme PaySa, an app-based platform that will have four businesses across lending, savings, payment and protection space.
Realme PaySa will offer digital personal loans up to Rs 1 lakh and digital SME loans up to Rs 5 lakh in partnership with fintech players Early Salary and LendingKart for personal loans and business loans, respectively. The interest rate will range between 14-36 per cent for individuals and 11-24 per cent for businesses on reducing basis, says Varun Sridhar, Lead, Realme PaySa.
The company will also offer mutual funds, screen damage insurance (for Realme phones) and credit reports. Details on mutual funds are awaited. As for insurance, the premium will vary based on the age of the phone and the phone model. For example, if a customer has a Realme 5 Pro phone priced at Rs 12,999 and she wants screen protection for 12 months, she will have two options - one-time screen damage for Rs 445 and two-time screen damages for Rs 515. is PaySa's has partnered with ICICI Lombard for its insurance services.
In partnership with CreditMantri, PaySa will offer credit reports having information such as credit score, summary of each loan account, loan level details, debt income ratio and repayment track records. The first three credit reports will be free, while the company is yet to decide the pricing strategy for beyond three reports. PaySa will also have a payment platform that will let consumers pay bills and transfer money.
"We aim to acquire 25 million customers over the next two years by making mainstream financial products accessible to consumers in emerging India," says Sridhar.
"We shall be targeting young Indian users aged between 18 and 30 years, enticing them with seamless delivery of financial products and riding on the back of tech-led innovation. Complete data security will prove to be our key strengths in this endeavour," he adds.
Unlike Realme, Xiaomi only offers personal loans up to Rs 1 lakh. It has partnered with NBFC Aditya Birla Finance Ltd and fintech start-ups such as Money View, EarlySalary, Zestmoney and CreditVidya. Its payment app Mi Pay was launched in March 2018. The company has plans to expand into other segments of financial services as well.
Should you avail such services?
Anuj Kacker, Coo and Co-Founder of fintech NBFC MoneyTap says people should be wary of Chinese handset manufactures coming up with financial services, especially lending. "You must check where the money is coming from. If they have collaborated with RBI-registered NBFCs or banks, it is fine. But if they have unknown lending partners offering payday loans, it could be a problem. They might set up shops and move away after sometime," says Kacker.
Shweta Jain, founder, Investography says while platform is not a big issue, everything boils down to guided financial goals to avoid debt trap. "For customers who know why they are borrowing or where they are investing, these platforms are fine from the execution point of view. But, they must make a comparison based on costs involved and user experience," Jain says.
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