Digital wallet MobiKwik is looking to enter the lending space by Diwali and the company is in the process of tying up with a number of non-banking financial companies (NBFCs) for the same. This was first reported by the Economic Times and a spokesperson confirmed the development. The lending business will have two options: An EMI model and a loan model. The EMI model can be used for purchases such as laptops and mobile phones on online websites which support MobiKwik while the loan model can be used for any purpose. Initially, MobiKwik is planning to give out loans worth Rs 50,000. The company will be giving out these loans using a credit score developed in-house. The spokesperson added that MobiKwik will consider the number of transactions a user has made on the platform OR how long a user has been on the platform, among other similar facotors to assess the credit score The company added that it is in talks with CashCare for the loans facility and added that it will also be talking with other NBFC players. It added that it is also ironing out other details about loan repayment time and collection etc before launching the product. Its main rival in the wallet space, Paytm, has payments bank licence. Though payments banks cannot undertake any lending operations, they can however partner with other companies to distribute loan products. Underwriting transactions Note that MobiKwik has another tie up with CashCare where it underwrites purchases for users who are…
