In India, the lending industry is on an explosive trajectory. As per a recent report from CIBIL, there are over INR 4 lakh crores worth of personal loans outstanding from nearly 1.9 crore customers, with each user accounting to an almost INR 2 lakh of the outstanding amount. Of these 1.9 crore customers, the majority tend to avail it for medical emergencies followed by shopping, wedding, travel and education purposes.
Understanding this demand, Manu Jain, Vice President, Xiaomi and Managing Director, Xiaomi India, says, “We are bringing Mi Credit to India hoping to provide yet another innovative and truly digital solution for their lending needs.”
Xiaomi, India’s leading smartphone and smart TV brand, has launched Mi Credit, its digital lending solution in India. Mi Credit is Xiaomi’s second Mi Finance solution to be launched in India after Mi Pay.
Mi Credit is an online curated marketplace for lending, to offer personal loans to Mi Fans. The current lending partners are primarily NBFCs or Fintechs such as Aditya Birla Finance Limited, Money View, EarlySalary, Zestmoney and CreditVidya.
Mi Credit has been running in India in a pilot format and has already disbursed loans of over 28 crores (approximately ~1 Cr / day) in November 2019. Over 20% of the users have availed the highest amount of loan INR 1 lakh. Currently, Mi Credit services more than 10 states spanning across 1,500 pin codes, and aims to expand its availability to 100% of the pin codes (more than 19,000 pin-codes) by the end of FY2019.
Also, Mi Fans can also check their credit score instantly on the app, for free, a service that is powered by Experian. Experian is a global leader in consumer and business credit reporting. And assuring maximum security, Xiaomi says that all user data on Mi Credit is stored securely in encrypted format in India through its partner Amazon Web Services Cloud Infrastructure.
Hong Feng, Co-Founder and Senior Vice President, Xiaomi Corporation / Chairman, and CEO, Xiaomi Finance on the global launch of Mi Credit outside China, said, “Xiaomi’s Mi Finance business started four years ago in China, with an aim to provide Fintech innovation for everyone. 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 behavior – it is one of the strengths we aim to leverage 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 dollars 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 revolutionize the Indian FinTech industry.”
Mi Credit app comes preloaded on all MIUI phones, and can also be downloaded from Google Play Store and GetApps, Xiaomi’s own app store.