Paytm business loan up to 5L: Eligibility, interest rate, online application

Paytm, is a household name in the world of digital payments in India. But did you know, it also facilitates Paytm business loan of up to ₹5 lakhs to its merchants? It is estimated that over 20 million merchants and small scale businesses use Paytm to accept payments online with ‘Paytm for Business’. Not surprisingly, in its goal to bring digital financial services to the underserved and unserved sectors of the economy, Paytm now has ventured into lending (in association with Paytm’s financial lending partners) and offers business Paytm loan to eligible borrowers.

In this article we understand the features of Paytm business loans, documents required, eligibility, loan amount, interest rates and more, to help you make informed decisions when seeking a small business loan.

What is Paytm business loan?

In general, when small businesses seek business loans, banks and NBFCs are the obvious choices. Securing a bank loan (e.g., SBI business loan, HDFC Bank business loan, or YES Bank MSME loan) or even a government MSME loan through SIDBI or other MSME loan schemes, is often the first choice.

However, with business loans on Paytm, small scale business owners can avail low-value loans easily without much hassle.

Paytm merchants can apply online for Paytm business loans for up to ₹5 lakh.

For more information and Paytm business loan details, visit: paytm.com/loans-credit-cards/business-loan/

Features of business loans on Paytm:

• Collateral-free – i.e., merchants don’t have to pledge any asset against the loan as security
• Easy repayment – Hassle-free daily instalment payments via auto deduction from Paytm settlements for Paytm business loan repayment
• Competitive loan interest-rates – Paytm business loan interest rate is based on the loan amount, borrower’s profile, and the bank/NBFC business loan
• Zero foreclosure charges – i.e., loans can be repaid loan earlier than the loan tenure without having to pay any fine/charges for foreclosure
• Eligibility – Existing Paytm merchants
• Loan amount offered – Up to ₹5 lakhs

Trivia: As per Paytm’s website, over 2 lakh Paytm merchants have availed unsecured business loans through Paytm.

How to apply for Paytm business loan online?

The loan application process on Paytm is simple, quick and online.

Step1:

You should have the Paytm for Business application downloaded on your phone and visit the ‘Business Loan’ tab to get started.

Step 2:

As a Paytm merchant, you will get a pre-approved business loan offer (e.g., ₹4 lakhs) with a breakdown of all the additional details, such as:

• Loan offer or amount you get
• Total repayment amount at 2% per month
• Daily instalment amount you pay
• Tenure of loan (usually in days)

You can use the online slider/ruler to modify the loan amount you are seeking. Accordingly, the other details will get refreshed. Select ‘Get started’ to proceed.

Step 3:

The application process mainly consists of the following stages:

• Updating details of the loan applicant – PAN number (to check if you have a good credit score for borrowing), Date of Birth, email address (this is required as all loan documents and other information will be emailed here)
• KYC verification including uploading a clear selfie image – this is to verify your identity
• Review of application – includes checking all details and ensuring the correct bank account is selected (once accepted, there can be no further changes made)
• Loan approval – i.e., verifying eligibility, business financial health and other details to process application
• Disbursal directly to bank account

To check your Paytm business loan repayment history, you can click on the Business Loan icon for details.

Note: It is recommended that you repay loan instalments in time to maintain a good credit score and increase your chances of getting better loan offers in future.

Benefits of Paytm business loans vis-à-vis other banks/NBFCs

There are several benefits of availing a business loan via Paytm for Business. The question however is: Is this the best loan offer for your business?

We do a quick comparison of bank/NBFC business loans interest rates and other components vis-à-vis of Paytm business loans to understand if it’s the right deal for you or not.

Paytm business loans vs Bank/NBFC business loan

*Borrowers are requested to check with their lending institutions for the latest updates on loan amount, eligibility, interest rates, repayment tenure and other terms and conditions.

Wrapping up

In brief, as a MSME owner, if you are using Paytm for Business and require instant funds for meeting daily operational expenses at work, Paytm business loans is a reliable choice. If it’s a planned spend and you require a larger sum, check with your nearest bank or apply for Business Loans on Tata nexarc.

Some of the other benefits of availing business loans through Paytm are:

• Check and track repayment history on app
• Quick approval process with disbursal directly to bank account
• Pre-approved loans based on merchant’s transaction history
• Higher loan offers based on merchant’s repayment record and other financials

FAQs on business loans through Paytm

A quick look at some of the most frequently asked questions on business loans via Paytm.

Author: Sohini Banerjee

Sohini is a seasoned content writer with 12 years’ experience in developing marketing and business content across multiple formats. At Tata nexarc, she leverages her skills in crafting curated content on the Indian MSME sector, steel procurement, and logistics. In her personal time, she enjoys reading fiction and being up-to-date on trends in digital marketing and the Indian business ecosystem.