Xiaomi has disrupted the Indian smartphone market in many ways. It was amongst the first companies to introduce class-leading hardware on a budget phone and they also debuted the flash sales. This time around, Xiaomi is offering a new credit service that is aimed at financial lending to its customers.
The Mi Credit will provide financial loans for Xiaomi users. All they need to do is log in and apply for the same. Xiaomi has partnered with KreditBee, a fintech company and is offering loans ranging from 1,000 to Rs 1,00,000. According to the company, the loans are targeted towards young professionals. The whole process can be initiated in less than 10 minutes with a usual KYC process.
That being said, the processing and disbursement of the loan are done by the partner platform. Xiaomi is mostly involved in linking the companies with the Mi users. It is to be seen whether this credit option will convert into a spike in Xiaomi sales or will it largely remain as a fintech offering for other purposes.
“Xiaomi provides internet services to give our users a complete mobile internet experience, and MIUI functions as an open platform for us to deliver our wide range of internet services, such as content, entertainment, financial services and productivity tools. The connectivity between our devices and the seamless integration between hardware and internet services enable us to provide our users with the better user experience. Mi Credit is another big step in bringing an important internet service to India and we trust that our users would be able to truly benefit as the service becomes more sophisticated.” -Manu Jain, MD, Xiaomi India.
Earlier this year, Xiaomi had announced that it will cap its profit margin to 5% and will return the cess to the users in the form of price benefit. All along, the affordability has been Xiaomi’s forte. In all likelihood, the company is aiming to overcome the dwarfed profit margins by offering ancillary services like the Mi Music, Mi Video and now the Mi Credit.