Xiaomi will soon offer gold loans, credit line cards and insurance products: Manu Jain

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Xiaomi plans to expand its presence in the country credit market with offers such as gold loans, credit line cards. The company also plans to introduce insurance products.

Xiaomi India CEO Manu Kumar Jain, in an interview with PTI, shared some details about the upcoming financial services planned by the Chinese company. Jain said they will offer 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 Mi Credit microcredit in 2019 and since then the company claims to have issued over a thousand loans. The maximum credit available through Mi Credit is 1 lakh. However, last year’s pandemic affected investor participation.

Jain explained, “Many neighborhoods have rethought the future of Mi Credit or Mi Financial Services as it should look. We are now back to developing this particular platform. In the first quarter of 2021 compared to the fourth quarter of 2020, we grew by 95%, and in the first quarter of 2021. compared to the first quarter of 2020, the growth was 35%. “

Jane stated that Xiaomi is working to create a full spectrum platform in terms of general financial services as well as a lending perspective.

Xiaomi will not only expand its lending business with gold loans and credit cards, but also enter the insurance industry, which has gained a lot of popularity since the 2020 Covid outbreak.

Jain said that Mi Credit will now offer a higher pre-approved loan of 25 lakhs (against 1 lakh earlier) and a tenure of up to 60 months. In addition, the company began offering SME loans and credit cards.

Mi Credit line cards will be launched in partnership with Stashfin.

“This is a unique product that includes a Buy Now Pay Later offer combined with a Personal Credit to allow the customer to use the offer across all channels without any restrictions,” said Ashish Handewal, Head of Xiaomi India Financial Services.

Handelwal says the gold loan service will be launching in the next few weeks.

Manu Jain stated that 40% of the users of the company’s loan products are self-employed, while the remaining 60% are employees.

“In 2021, we plan to continue diversification and provide 20% of loans to MSMEs (micro, small and medium enterprises). We launched business loans to meet the emerging needs of entrepreneurs and MSMEs, ”he added.

According to the head of the company, the Xiaomi Mi Pay service, launched in 2018, reached 20 million registered users in a year. Now this number has exceeded 50 million users.

In terms of insurance, Xiaomi has partnered with ICICI Lombard to oversee the health insurance product. This was tested in July and will continue to be offered.

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