Xiaomi came to India with an entry-level budget smartphone and a smart idea of selling phones through flash sale. The plan worked and the company didn’t look back thereafter. From a couple of offering to a whole variety of product portfolio for every consumer needs, the company spread its wings in not only the smartphone market but also in the accessories, Air Purifier, VR headsets etc., categories. And now as a switch from an electronics portfolio, Xiaomi has now introduced a new service. A financial service.
Xiaomi India has tied up with KrazyBee and have launched the MiCredit service in India. It basically an instant loan service for salaried employees who are MiUI users. Confused? Let’s break that down for you. Xiaomi will offer a loan to only those who use MiUI, indirectly it means only Xiaomi Phone users. And that is like a condition because some reports suggest that the MiA1 smartphone users will not be eligible for the loan as the phone does not use the MiUI, instead it is pre-loaded with Pure Android.
So eligible candidates or MiUI users can apply for a loan amount between INR 1,000 and INR 1,00,000. The processing of the loan will require a KYC (Know Your Consumer). As of now, Xiaomi will only list the agents that can help you get the instant loan and the KYC and approval will happen on KrazyBee’s CreditBee platform. Futher, looking at the response, Xiaomi India may itself get into the finances part of the micro lending game.
The loan will attract an interest rate of 3%, which is very high as compared to the interest rates charged by banks and other financial institutions. Also, the repayment duration can only be had between 15 to 90 days (three months). Even the duration is less as compared to the ones offered by other financial institutions. But none the less, this service micro lending will help young consumers and benefit them when they are in need. The same model has been offered in China by the Chinese arm of Xiaomi and now their tests on the Indian ground have started.