Paytm to slash down personal loans below Rs 50,000

Paytm, the popular digital payments brand we all know about, just made some major changes in its loan game.

First off, Paytm's parent company, One97, has decided to slash down on postpaid loans and small-ticket personal loans below Rs 50,000. 

Why? Well, they're doing a bit of a financial shuffle to keep things in tip-top shape. Instead of focusing on the smaller loans, they're shifting gears towards the big leagues – larger-ticket personal loans and business loans.

The company while explaining said that they've updated their strategy for loans under Rs 50,000, especially for the postpaid loan option. This move comes after taking a good look at the big picture – considering recent financial happenings, guidance from the rule-makers, and having a good old chat with their lending buddies.

Now, why the shift? Paytm wants to keep its loan portfolio healthy and robust. So, the postpaid loan product is going to take a backseat in their loan distribution business from now on.

But wait, there's more to this financial tale! Turns out, the lenders (the folks giving out the loans) are feeling the pinch in their pockets.

Why? Well, the Reserve Bank of India (RBI) recently cranked up the capital requirements by a whopping 25%. Imagine having to pay more just to offer those smaller loans below Rs 50,000 – it makes things tough for the lenders.

So, Paytm is making moves to adapt and thrive in this changing financial landscape. They're focusing on the bigger loans to keep the financial charm flowing.

Paytm is also expected to turn profitable soon so they are taking steps very strategically. 

2024 might turn into an amazing year for Paytm

Until then...

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