Launching yet another financial service in the Indian market after Mi Pay, internet technology company Xiaomi will facilitate online lending with its new offering Mi Credit. The new financial service is a curated online marketplace for lending that the company claims will offer personal loans up to Rs 1 lakh, to start with. Accessible via Mi Credit, the app can be downloaded from Google Play Store and GetApps (Xiaomi's app store) and will also come pre-installed in all MIUI phones.
Manu Jain, Vice President, Xiaomi and Managing Director, Xiaomi India says, "In India, the lending industry is on an explosive trajectory. As per a recent report from CIBIL, there is over Rs 4 lakh crore worth of personal loans outstanding from nearly 1.9 crore customers, with each user accounting for an almost Rs 2 lakh of outstanding amount. Of these 1.9 crore customers, majority tend to avail it for medical emergencies followed by shopping, wedding, travel and education purposes. We are bringing Mi Credit to India hoping to provide yet another innovative and truly digital solution for their lending needs."
After China, India is the second country to have launched Mi Credit. The service started as a pilot in the third quarter of 2019 in India, and services more than 10 states spanning across 1500 pincodes. The company aims to expand its availability to over 19,000 pincodes by the end of the financial year 2019/20. Loans over Rs 28 crore have already been disbursed in November 2019 with over 20 per cent users having availed the highest loan amount of Rs 1 lakh. Xiaomi's Mi Finance business started four years ago in China.
Claiming to solve the most challenges associated with the traditional lending industry, the Mi Credit is a 100 per cent digital experience. The concept behind Mi Credit is to offer an easy application process for securing loans with an intuitive interface. The app has a digital application form that needs to be filled in along with uploading necessary documents. Once the loan is approved, within minutes the consumer gets an option to choose the amount and the tenure of the loan. The digital advantage also shows in real-time disbursement of loans and lower interest rates. Xiaomi says that 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. All user data on Mi Credit will be stored securely in encrypted format in India through Amazon Web Services Cloud Infrastructure.
Hong Feng, Co-Founder and Senior Vice President, Xiaomi Corporation and Chairman and CEO, Xiaomi Finance says, "We are committed to be the comprehensive financial partner for our global Mi Fan community, retail partners and manufacturing Industry. Today, we have over 300 million Mi Fans in our global community and having understood their consumption behaviour, we aim to leverage this to build a stronger Mi Finance business globally. We see a huge opportunity for consumer lending in India with estimations reaching up to $1 trillion in digital lending by 2023, as per a report from BCG. This makes us believe that our Mi Finance business, based on solutions such as Mi Pay and Mi Credit, can truly revolutionise the Indian Fintech industry."
Xiaomi also allows Mi Fans to check their credit score instantly on the app for free. This is powered by Experian, a global leader in consumer and business credit reporting.