Google Pay's New Sachet Loan: Easy Repayment Options for All

One can also borrow from Google Pay, the payment app of tech giant Google. The company has also entered into agreements with many Indian banks and financial institutions for this purpose. The company offers sachet loans to small traders starting at Rs 15,000. Their monthly installment starts from Rs.111. Google Pay joins hands with DMI Finance to offer Sachet Loans.

Google Pay has partnered with ePayLater to offer credit lines to merchants. Its objective is to meet the working capital requirements of traders. Apart from this, Google has tied up with ICICI Bank for credit line on UPI.

At the same time, the company has partnered with Axis Bank to expand its personal loan portfolio. Lending to small businesses will help Google tap into India's financial market. Currently, large payment firms like Paytm and BharatPe already offer such services to merchants.

What are Sachet Loans?

Sachet loans are very small loans that are available for a very short period of time. Usually these are pre-approved loans and you will get this loan immediately. Repayment is also easy. These loans are Rs. 10,000 and their tenure ranges from 7 months to 12 months. To take a Sachet loan, you need to download the loan app.

Linking RuPay card was allowed last year

In September last year, RBI gave permission to link RuPay credit card with UPI. The Reserve Bank aims to promote the use of low value loans through the UPI network. RBI Governor Shaktikanta Das announced the launch of credit line for UPI at the Global FinTech Fest last month in September. The benefit of this is that banks and lenders help customers provide lines of credit on UPI accounts that they use for their purchases.