Chinese phone maker Xiaomi started its Mi Credit personal loan platform back in May last year. Back then, it had only limited partners like KrazyBee. But, fast forward to December 2019, the company decided to go for a bigger launch. It partnered with major lending partners from the likes of Aditya Birla Capital Personal Finance, Money View, Zest Money, and many more. The Mi Credit app is only an intermediate platform to facilitate instant loans from the lending partners to needy customers. And now, according to the latest report, Xiaomi’s Mi Credit digital lending service has disbursed loans of over Rs. 125 crores to Indian users as of the end of last year.
Interestingly, the report also notes that 50% of the total loans have been availed by non-Xiaomi Android handset users. The company also claims that over a million Indian users have used the app to check their credit score, a service powered by the Irish-based credit reporting firm Experian and available for free on the Mi Credit platform.
Using the Mi Credit app, one can avail loans starting from Rs. 5000 to as high as Rs. 2,00,000. The interest rates on loans start from 1.35% per month, according to the company website. For instance, if one takes a loan of Rs 20,000 and decides to repay it over 6 EMIs, then the interest charged would be 16.2% per annum – bringing the total interest payable to Rs 937. In that case, the EMI per month for the user would be Rs. 3423.
Xiaomi claims that the whole process would take only a few minutes and the money will be deposited to the bank account of the user in no time following approval. The KYC verification, disbursal, and repayment are all done digitally.