Based on what we know from the earlier iteration of Mi Credit, a user could apply for the loan simply by using his/her Mi account or phone number to upload the KYC document that includes ID, address proof and so on. According to Jain, during the pilot phase, Xiaomi was able to serve 1.5K pin codes across 10 Indian states including Maharashtra and Karnataka.
The company will not be lending the credit amount to Mi users but will only facilitate the connection between a loan seeker and the service provider. Mi Credit is Xiaomi's second finance solution to be launched in India after Mi Pay.
Xiaomi claims that all user data on Mi Credit is stored securely in an encrypted format in India through its partner, Amazon Web Services Cloud Infrastructure.
Announcing the partnerships on Tuesday (December 3), Xiaomi says it has partnered with Aditya Birla Finance, ZestMoney, EarlySalary, Money View and CreditVidya for the lending service. "Mi Credit solves most challenges associated with the traditional lending industry with a 100 per cent digital experience", Jain said. Xiaomi says first time users can complete the application process in 5 minutes on Mi Credit.
Mi Credit app is now available only for Android users in India.
Talking about why it has adopted a marketplace model, Manu Kumar Jain, Global VP of Xiaomi said that this helps Xiaomi achieve a high success rate, bigger loan amounts and better interest rates.
Mi Credit app comes preloaded on all MIUI phones, and can also be downloaded from Google Play Store as well as GetApps, Xiaomi's own app store.
The company began testing the app with some users in India last month. The company, which recently posted one of its slowest growing quarterly reports, has been attempting to cut its reliance on hardware products and make more money off its internet services and through ads. It was launched in India in March 2018, and within nine months has already captured over 20 million registered users.
He added that the opportunity in online credit lending in India is estimated to touch Rs 70 lakh crore by 2023.
Hong Feng, co-founder and senior vice president of Xiaomi, said the company understands the consumption behaviour of its 300 million users. "It is one of the strengths we aim to leverage to build a stronger Mi Finance business globally. We are bringing Mi Credit to India hoping to provide yet another innovative and truly digital solution for their lending needs".