Xiaomi has announced 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. It’s built as a personal loan option aimed at young professionals and millennials. Mi Credit provides an easy application process for securing loans, with an intuitive interface.
First-time users can complete the digital application form within five minutes, and repeat customers can avail a loan with one click disbursement. Once the loan is approved, the consumer has the option to choose the amount and the tenure of the loan. The digital advantage also shows in realtime disbursement of loans and lower interest rates. Mi Fans will also be able to check their credit score instantly on the app, for free, a service which is powered by consumer and business credit reporting firm Experian. All user data on Mi Credit is stored securely in encrypted format in India through Amazon Web Services Cloud Infrastructure.
Hong Feng, Co-Founder and Senior Vice President, Xiaomi Corporation, and 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 being 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 behaviour, 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 revolutionise the Indian FinTech industry.”
Manu Jain, Vice President, Xiaomi and Managing Director, Xiaomi India further added: “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. We are bringing Mi Credit to India hoping to provide yet another innovative and truly digital solution for their lending needs.”
Mi Credit has been running in India in a pilot format and has already disbursed loans worth over 28 crores in November 2019, with over 20 per cent users opting for the highest amount of loan (Rs 1 lakh). Currently, Mi Credit services more than 10 states spanning across 1,500 pin codes, and aims to expand its availability to the rest of the country by the end of FY2019. 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. Mi Pay is a UPI based payment app available on all MIUI phones and can be downloaded from GetApps and Google Play Store. It was launched in India in March 2018 and already has over 20 million registered users.