Paytm ties up with Clix Finance to offer instant, short-term loans

Financial services platform Paytm has tied up with digital non-banking financial company (NBFC) Clix Finance to offer instant digital loans to customers and merchants on the Paytm platform. The initiative is targeting the self-employed and small and micro enterprises, who often find it hard to get a loan from regular banks.


A press release from Paytm stated that using proprietary machine learning models developed by Paytm and Clix, Paytm customers and merchants will get instant digital loans on the Paytm platform. The product offering will include ‘Deferred Payment or Post-paid’ and ‘Merchant Lines’ among other products for Paytm customers and merchants.

Tata Capital and Indifi are among Paytm’s other NBFC partners. However, a public interest litigation was filed against Paytm in May alleging that Paytm Payments bank was offering credit to its users, which was against regulations. To provide loans to its users, Paytm needs such tie-ups, as it is not a certified NBFC itself.

Nitin Misra, Senior Vice President, Paytm, said:

“We have seen an overwhelming response to Paytm Postpaid and merchant lending products. With this partnership, we aim to bring our credit tested algorithmic lending products to a larger customer and merchant base.”

The press statement added that over the next few months, Clix and Paytm – both Gurgaon-based companies – would introduce more products.

Bhavesh Gupta, CEO, Clix, said, “At Clix, our goal is to empower our customers by offering credit facilities that are seamlessly integrated with their purchase journeys. Built on customer-centricity and strong technological and analytical capabilities of both partners, we believe that our partnership with Paytm will be a significant step towards taking customer experience to a completely new level.”

This development follows Paytm’s recent launch of an AI-based router engine, which will help merchants to achieve higher payment success rates. Recently, Paytm had also announced its entry into education sector with financial services like educational insurance, loans, and co-branded smart cards for students.