Paytm plans to focus on high-ticket loans and reduce loans below Rs 50,000, as merchant loan performance surpasses consumer loans. The company also plans to onboard more NBFC partners.
Photograph: Courtesy Paytm
New Delhi, Dec 6 (PTI) Fintech firm One97 Communications, which operates in the name of the Paytm brand, will focus on high-ticket loans and go slow on loans that are less than Rs 50,000, a senior company official said on Wednesday.
Paytm President and Chief Operating Officer Bhavesh Gupta said the company's merchant loan portfolio is performing better now compared to consumer loans.
"We are seeing better performance on the merchant side than the consumer side. We will try to do a lot more there. Our focus now on the calibration of business is on high ticket, slowing down to less than Rs 50,000," Gupta said during an analyst call.
He said postpaid loans will gradually start reducing in the overall lending business.
The company acquires 3.5 to 4 lakh new postpaid loan customers on an average every month, out of which around 70 per cent opted for less than Rs 50,000 loans.
Gupta said that new postpaid customers' growth rate may drop down.
He said 60 per cent plus of Paytm's new loan disbursal comes to existing loan customers who have performed very well on the repayment front.
"We will try to grow that even more from 60 per cent to 70 per cent," Gupta added.
He said that Paytm plans to onboard two more large non-banking financial services companies and one more bank for lending services in the next two quarters. Paytm, at present, has around 7 NBFC partners.
"There is now a good quality appetite for good quality credit," Gupta said.
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