Synopsis
The handset maker is aiming to become one of the largest players in the country s fin-tech space through its Mi Credit lending service and Mi Pay application. It considers India as the biggest market after China for Mi Credit.
Manu Jain, Xiaomi India’s head and global vice president
India s top smartphone brand Xiaomi is refocusing on its
fintech business, which was hurt severely due to the pandemic last year when the company’s partners shifted focus from giving out fresh loans to recovering the money from customers.
“Last year, it was really difficult for our fintech business as post the lockdown our entire business came down to zero. The focus then for all our partners on the platform changed from giving fresh loans to ensuring the collections are happening,” Manu Jain, Xiaomi India’s head and global vice president told ET.
Synopsis
The Enforcement Directorate and CIDs have launched probe against more than two dozen China-backed loan apps and directed Paytm and Razorpay to stop processing their transactions and payments.
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Mumbai: The Enforcement Directorate (ED) and Criminal Investigation Departments (CID) of various state police forces are set to launch probes against more than two dozen China-backed fintech lenders, such as SnapIt Loan, Bubble loan, Go Cash and Flip Cash, having directed payment gateways to stop processing their transactions and payments, multiple people aware of the developments told ET.
The ED and CID units have written to payment gateways, including Razorpay that clears a bulk of these transactions, to stop their dealings with such companies. A similar communication has also gone to Paytm, one of the sources cited above said.
ED, police CIDs crack whip on Chinese-backed fintech lenders: Report
The ED and police CIDs have also sent written notices to payment gateways such as Razorpay and Paytm, asking them to “stop dealings with such companies” January 22, 2021 / 01:29 PM IST
Various state police Criminal Investigation Departments (CID) and the Enforcement Directorate (ED) will launch investigations against financial technology (fintech) lenders who received Chinese investments.
The fintech companies, numbering over 24 and including Bubble Loan, Flip Cash, Go Cash and SnapIt Loan, have been asked to stop processing payments and transactions, sources told The Economic Times.
Moneycontrol could not independently verify the report.
Having identified a potential borrower, they then offer small loans between Rs 10,000 and Rs 60,000 at usurious rates of interests between 60 and 100 per cent. The tenure for these loans could range from one to two weeks. It is worth noting that a regular microfinance loan usually comes with an interest rate between 22 and 25 per cent, with a conventional personal loan having a lending rate of 7 to 12 per cent.
What is particularly attractive to borrowers about these apps is that they do not require much documentation before sanctioning a loan. In some cases, borrowers may only have to submit a photograph and AADHAAR details with the loan receiving approval within minutes. No income verification or background checks are conducted.
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Illegal app-based financiers are thriving across the country. These moneylenders target younger customers who look for quick loans for consumption purposes. On default, the harassment begins. December 23, 2020 / 04:21 PM IST
It was a shocker for Rajiv, a 25-year-old engineering student in Chennai, when he received back-to-back calls from family members and friends last month seeking details of his loan default and offering monetary assistance to come out of the debt-trap.
Rajiv had drawn a Rs 50,000 loan from one of the digital lending apps for purchasing his bike. He couldn’t return the money within the stipulated period. Rajiv found that the app company had tracked down his contact details stored on the phone and started contacting them to flag the default. He managed to get some funds and pay back to the lender in the next two days.