Decode Vijay Shekhar Sharma’s latest tweet on – 2020 being “the year of loans”

• Payment founder Vijay Shekhar Sharma said 2020 would be the year of ready.
• Interestingly, Paytm Business Loan was launched in January.
• In December 2019, players like Xiaomi and Realme had also entered the credit industry in India.

Vijay Shekhar Sharma focuses on loans and he himself revealed it on Twitter. Sharma, who founded A97 Communications which manages Paytm declared 2020 as the loan year.

There is a reason behind Sharma’s prophecy. In January, Paytm launched its lending function for business loans. Paytm Business Loan allocates loans of a minimum of 10,000 to 2 lakh for a term of 180 days. Thanks to this, users will be eligible for a higher loan limit after the current period has run out. But, only if there are no defaults.

In January, Paytm also launched an all-in-one QR code for merchants. With this feature, merchants will be able to accept unlimited payments from Paytm Wallet, Rupay Cards and all UPI-based payment apps directly to their bank account without having to pay a processing fee.



Paytm Senior Vice President Saurabh Sharma also told ET that the company is seeking an NBFC (Non-Bank Finance Corporation) license. In July 2019, Paytm also partnered with NBFC Clix Finance to offer instant digital loans.

The power to lend

Digital lending has the potential to gain space, especially as the availability of credit from traditional sources has slowed. According to the economic study published before the Union budget, credit growth slowed to 7.1% in December last year. A year earlier, it had exceeded 12% – squeezing the industry in times of slower growth.

The digital lending space is also teeming with unlikely new players like smartphone makers Xiaomi, Realme entering the space. Xiaomi launched Mi Credit in December 2019, and this was quickly followed by the launch of Realme Paysa.

Xiaomi MD and CEO Manu Kumar Jain had said he saw potential in the country’s 1.9 crore personal loan consumer. According to a BCG report, India’s online credit industry will be worth $ 1 trillion by 2023.

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Smartphone makers Realme and Xiaomi will also compete in the financial services market