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Here’s how merchants can avail instant business loans from Paytm

Here’s How Merchants Can Avail Instant Business Loans From Paytm

Paytm has been at the forefront of affordable credit for MSMEs and small time merchants. Adding to their latest offering, merchants can now avail instant business loans from Paytm.

Paytm offers collateral free loans of up to Rs.2 lakhs to small merchants. These loans are offered as part of the ‘Merchant Lending Program’. They are low interest loans being offered in partnership with scheduled commercial banks and NBFCs. Borrowers can access these loans through the ‘Paytm for Business’ app.

Paytm Instant Business Loan – A snapshot

Loan Amount Rs.10,000 – Up to Rs.2 lakhs
Tenure 180 Days
Processing Fees 2% + GST


It will be a completely online digital application process to avail these loans. A special algorithm determines the loan eligibility of the applicants based on their daily transactions. It then offers a pre-qualified loan amount.

Since the loan is processed completely online, it removes the need for lengthy documentation and verification processes, putting the loan amount into your hands at the click of a button. These are also collateral-free loans, allowing deserving entrepreneurs to access credit they otherwise can’t afford.

Here Is The Loan Application Process For The Merchant Lending Program

  1. Check the offer available to you by tapping the “Business Loan” icon on the Paytm for Business app’s home screen. You can also adjust the loan amount based on your requirements.
  2. You will be able to see data such as the loan amount, the amount to be disbursed, the total to be paid, the daily instalment, the tenure term, and so on once you have selected the amount.
  3. To proceed, double-check your information, check the box, and click “Get Started.” You can also give approval for CKYC to collect your KYC information in order to expedite your loan application.
  4. You can verify or enter in details such as your PAN card data, date of birth, and email address on the next page. After that, you can continue to finalize the agreement. Your credit score and KYC details will be validated once the PAN details have been verified.
  5. The loan amount will be disbursed to your account as soon as you finalize your loan application.

Why Should Small Merchants Opt For Paytm Instant Business Loans?

Receiving timely credit has been very challenging for small merchants; especially during this Corona pandemic, many merchants lost their entire business to cash flow disruption issues. They have had to struggle to infuse fresh capital into their business in order to stay afloat. That is why, this instant business loan from Paytm is sure to be a game changer for small merchants.

  • The procedure is completely paperless and digital
  • It is not necessary to visit any bank branch
  • Just use the Paytm app to pay daily instalments instantly
  • There are no hidden fees charged on this loan
  • There are no upfront fees or a lock-in period, and the loan can be repaid at any time

This instant business loan gives flexible and scalable working capital funds for your daily cash needs. With upfront payments, you can also get good cash discounts from suppliers. Use this loan to buy equipment that can help you expand your operation, such as machinery, IT equipment, and so on.

How Instant Business Loans Can Help Small Merchants?

Small merchants in India are often faced with financial challenges, and a business loan is certainly one of the best ways to address this issue. Instant business loans have recently taken over the business lending market, and small time entrepreneurs are looking with great interest at how this new business lending model can work for them.

These loans are often processed without any collateral or other loan documentation. The only requirement is that the merchant has a good credit history. This has proved to be a great advantage for merchants of small stature, who must find ways to finance their business without having to rely on the bank to provide them with the funds they need. These instant funding help them to advance their business, and establish a brand name in the market.

A Few Drawbacks Of Accessing Instant Business Loans For Small Merchants

Offered without any collateral and very little documentation, these instant loans can prove to be hazardous to small merchants at times. These loans come with very high interest rates. They also have high minimum repayments of the principal and interest. So, it is not a bad idea to read the terms and conditions before you sign a loan.

If not treaded carefully, small merchants can end up in a debt trap with these instant loans. The number of instances of lender harassment has increased significantly in recent years, leading to a rise in the number of lawsuits. It does not take a great deal of imagination to understand that the borrowers have no idea about the repayment terms and conditions attached to these loans.

It is always prudent to carefully scrutinize these instant loans so as to avoid them being used to fall prey to loan sharks and other unscrupulous people.


Paytm, owned by One97 Communications Limited, is a leading payments company that has helped over 1.5 billion customers.

It is the top payment solution provider and has been serving merchants for over a decade. As a leading player in the payments industry, with a global reach of over 500 million consumers, Paytm has been making transactions easier for merchants and has helped to drive new business growth.

This instant business loan product from Paytm is aimed at the merchants who use Paytm to process payments, and pay their bills. It is to assist merchants who find it too difficult to secure loans at regular banks or any small business owner who is eager to start their own business, but can’t afford to take on the initial capital.