THIS digital wallet rolls out personal loan facility; check details here | Mint

MobiKwik, digital wallet provider, recently announced a strategic partnership with Piramal Capital & Housing Finance (Piramal Finance) to offer personal loans to its customers.

As a result of this partnership, MobiKwik customers will be able to raise personal loans directly through the MobiKwik app. One can use a personal loan to meet a range of needs such as medical, travel, education, and other consumption purposes.

The partnership between MobiKwik and Piramal Finance is aimed to meet the neglected credit needs through technology. The two companies are geared to increasing accessibility and affordability of personal loans to consumers across urban and rural India.

Key details

• One can raise a personal loan between ₹50,000 to ₹2 lakh
• The repayment period can range between six months to 24 months.
• These loans are meant for persons in the age group of 23 to 55, who earn at least ₹25,000 per month.

Meanwhile, it is important for the borrowers to understand that personal loans are not to be seen as panacea for all financial problems. Typically, personal loans carry higher interest rates and sometimes hidden charges which can raise the overall repayment amount and can even lead to debt burden.

While sharing his thoughts about the partnership, Bipin Preet Singh, Co-Founder and MD, MobiKwik said, “At MobiKwik, we have always strived to empower our customers with innovative financial products. Our partnership with Piramal Finance marks a significant step towards addressing the credit needs of millions of Indians. By combining Piramal Finance’s expertise in financial services with MobiKwik’s digital platform, we are confident of creating a seamless experience for our users. This collaboration aligns with MobiKwik’s vision of driving financial inclusion by leveraging digital innovation. Along with our partners, we aim to make credit more accessible and affordable for customers across India by introducing new and innovative products to the market.”

It is noteworthy to mention here that the key to avoid potential issues relating to personal loans is responsible borrowing.

(Note: Raising a loan comes with its own risks. So, due caution is advised)