Sachet loans are small-value loans that are typically offered to low-income borrowers. They are often used to finance small expenses, such as medical bills, school fees, or business start-up costs.
Google has announced that it will begin offering sachet loans in India through its Google Pay app. The loans will be offered in partnership with DMI Finance and will range in size from ₹15,000 to ₹1 lakh. Repayment terms will range from 7 days to 12 months.
The launch of sachet loans on Google Pay is significant because it will make it easier for low-income borrowers to access credit. In the past, these borrowers have often had to rely on informal lenders who charge high interest rates.
Sachet loans are expected to benefit a wide range of people in India, including small business owners, farmers, and migrant workers. They can help people to finance their businesses, invest in their education, and meet unexpected expenses.
Here are some of the potential benefits of sachet loans:
- Increased access to credit: Sachet loans can help to increase access to credit for low-income borrowers who have traditionally been excluded from the formal financial system.
- Reduced poverty: Sachet loans can help people to lift themselves out of poverty by providing them with the resources they need to start or grow their businesses, invest in their education, and meet unexpected expenses.
- Improved financial well-being: Sachet loans can help people to improve their financial well-being by providing them with a way to manage their finances more effectively.
The launch of sachet loans on Google Pay is a positive development that has the potential to benefit millions of people in India.