Google Pay launches sachet loans for small businesses in India

Google India has announced the launch of sachet loans on the Google Pay application to help small businesses in the country. Sachet loans are small loans that can be repaid in simpler repayment amounts, making them more affordable for small businesses.

Google Pay has also partnered with ePayLater to provide merchants with a credit line to help them meet their working capital requirements. Additionally, Google India has launched credit lines on UPI in collaboration with ICICI Bank and expanded the portfolio of personal loans on Google Pay by partnering with Axis Bank.

Google India's Vice President Ambarish Kenghe informed that ₹167 lakh crore value was processed through UPI in the last 12 months, and that half of the loans disbursed through Google Pay are to borrowers with less than ₹30,000 of monthly income, a vast majority of which belong to tier 2 towns and beyond.

During the 9th edition of Google for India, Sanjay Gupta, Vice President and Country Head of the company said that they plan to improve efforts in the safety of Artificial Intelligence.

Simplified Repayment Options

To ensure accessibility and convenience, Google India has designed the sachet loans with simple repayment options. Merchants can choose repayment amounts that start as low as ₹111, making it easier for them to manage their finances.

Google Pay's Credit Line for Merchants

In partnership with ePayLater, Google Pay has launched a credit line to provide working capital support for merchants. This initiative is set to benefit businesses by allowing them to use the credit line for purchasing stock and supplies from both online and offline distributors.

Expanding Financial Services

Google India's commitment to financial inclusion extends further, as the company has introduced credit lines on the Unified Payments Interface (UPI) in collaboration with ICICI Bank. Additionally, Google India has expanded its range of personal loans available through Google Pay by partnering with Axis Bank.

Impressive UPI Milestones

Ambarish Kenghe, Vice President at Google Pay, highlighted significant milestones in UPI (Unified Payments Interface) transactions, with an astounding ₹167 lakh crore processed in the past year. This indicates a substantial shift towards digital payment methods.

Focused on Tier 2 Towns and Beyond

Kenghe emphasized that a substantial portion of loans disbursed through Google Pay catered to borrowers with monthly incomes below ₹30,000, underscoring the platform's reach in tier 2 towns and beyond.

Strengthening Safety in AI

Sanjay Gupta, Vice President and Country Head of Google India, reaffirmed the company's commitment to enhancing safety in Artificial Intelligence (AI) endeavors. This underscores the importance of responsible and secure AI technologies.

Supporting Small Businesses through AI

Google India's efforts to bolster small businesses extend to AI-driven solutions. The Google Merchant Center Next, powered by AI, offers automatic population of a merchant's product feed with website-detected information. This feature grants merchants control over the content in their product feeds.

Combating Financial Scams

In a bid to protect users from evolving financial scams and fraud, Google India has introduced DigiKavach. Notably, Google Pay has successfully prevented scams worth ₹12,000 crore and implemented measures to block 3,500 predatory loan apps.

Access to Government Schemes

In the future, Google India plans to empower its users in India by providing access to critical information on over 100 government schemes. This initiative aims to streamline access to government services and benefits for citizens.

Google India has also announced other measures for small businesses in India, including:

• Google Merchant Center Next, which will automatically populate a merchant's product feed with information detected from their website and allow merchants full control over what gets added to their feed.

• DigiKavach, an initiative to protect people against ever-evolving financial scams and fraud. Google Pay has prevented scams worth ₹12,000 crore on GPay and taken steps to block 3,500 predatory loan apps.

• Google will soon help its billions of users in India to access critical information about over 100 government schemes.

Relevant and latest facts:

• India is a major hub for small businesses, with over 63 million small businesses contributing to over 40% of India's GDP.

• Access to finance is a major challenge for small businesses in India, with over 60% of small businesses not having access to formal credit.

• Google Pay is a leading digital payments platform in India, with over 270 million active users.

• Google India's initiatives to support small businesses are aligned with the Indian government's focus on promoting entrepreneurship and small business growth.