India's digital mortgage market is now turning into a battlefield for companies from Facebook to Xiaomi. Recently, many players are looking for a foothold in this business of Rs 75 lakh crore. Facebook said last month that India could be the first country where it would provide loans on its platform.
Google said that it will be started as a small enterprise mortgage program. This loan will be available at an interest rate of 17% to 20% without collateral. Under this, a loan of Rs 5 lakh to Rs 50 lakh will be available. A report quoting Manu Jain, Country Head, Press Belief of India, said that the entry of social media in India coincides with that of Xiaomi. This Chinese company makes everything from cookers to gaming screens.
Now Xiaomi is planning to partner with many big banks and startup digital in the country. Under this, loans, debit-credit cards, and insurance products are to be given. Process NV said this week that it would buy Indian online fund company BillDesk for Rs 34,376 crore. This is the largest acquisition ever in Asian countries.
Amazon.com also made its first funding in the country's wealth administration sector last month. Google can also increase its funding. Google currently offers Wealth Management products like Digital Gold, Mutual Funds on its Google Pay platform. It is now tying up with smaller Indian banks to introduce time deposits for its customers.
Online transactions have increased during the pandemic. However, the traditional bankers have come into a cautious mode after the huge increase in loans. With this, India's digital fund market is attracting some big tech companies. According to estimates from Boston Consulting Group (BCG), the digital lending market could triple to $350 billion by 2023. The total is estimated to reach Rs 75 lakh crore by 2024.
Indian customers are drawn to optimally designed digital experiences. That's why many companies are waiting to capitalize on this opportunity. It also has the country's largest company Reliance Industries, Amazon, and other companies. Amazon, however, is stuck in the deal between Future and Reliance Industries. Recently, the court has given a verdict in favor of Amazon in this matter.
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