Paytm to give out fewer low value personal loans

Digital payments firm Paytm said on Wednesday it will cut down on disbursing loans under 50,000 rupees ($600.14), weeks after the central bank tightened rules on consumer lending after a surge in demand. The move will lead to a near 40-50 per cent drop in the volume of loans given out through the platform’s post-paid product, Bhavesh Gupta, President and chief operating officer of Paytm, said on a call with analysts. The impact on Paytm’s revenue growth will be minimal, he added.

The company said it will expand its portfolio of higher ticket personal and commercial loans to lower risk and high credit-worthy customers, expecting “good demand” for loans of more than 50,000 rupees.