Xiaomi plans to expand its presence in the country’s credit market with the help of offers such as gold credits, credit line cards. In addition, the company plans to introduce insurance products.
Xiaomi India’s head Manu Kumar Jain shared some details about the Chinese company’s upcoming financial services in an interview with PTI. Jain claimed that they will provide these financial services in partnership with organizations such as Axis Bank, IDFC Bank, Aditya Birla Finance Ltd, Stashfin, Money View, Early Salary, and Credit Vidya.
The company first launched its Mi Credit microcredit offering in 2019 and has since claimed to have paid off loans through a lakh. The maximum available credit via Mi Credit is ₹1 lakh. However, last year’s pandemic had an impact on investor participation.
Jain stated, “Many quarters have thought about what the future of Mi Credit or Mi Financial Services should be. We are now again in the process of expanding this special platform. Q1 2021 compared to Q4 2020, we grew by 95 percent and Q1 2021 compared to the first quarter of 2020 we recorded growth of 35 percent. “
Jain claimed that Xiaomi was working to build a full spectrum platform in terms of the overall financial services as well as the credit perspective.
Xiaomi will not only grow its lending business via gold credits and credit line cards, it will also enter the insurance industry, which has been gaining momentum since the Covid outbreak in 2020.
Jain claimed that Mi Credit now has a higher pre-approved credit from. will offer ₹25 lakh (against ₹1 lakh previously) and a term of up to 60 months. In addition, the company has started offering SME loans and credit line cards as well.
Mi Credit’s line of credit cards are launched in partnership with Stashfin.
“It is a unique product that comes with the“ buy now, pay later ”offer in combination with a personal loan, so that the customer can use the offer without restrictions across all channels,” said Ashish Khandelwal, Head of Xiaomi India Financial Services.
Khandelwal claims the gold credit service will be launched in the next few weeks.
Manu Jain stated that 40% of the company’s loan product users are self-employed and the remaining 60% are employees.
“In 2021 we plan to diversify further and provide 20 percent of the loans to MSMEs (micro, small and medium-sized enterprises). We have set up business loans to meet the emerging needs of entrepreneurs and MSMEs, ”he added.
The Mi Pay service launched by Xiaomi in 2018 had, according to the company’s boss, touched 20 million registered users within a year. That number has now exceeded 50 million users.
For insurance, Xiaomi has teamed up with ICICI Lombard to curate a health insurance product. This was piloted in July and will continue to be offered.
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