A key part of Paisabazaar’s long-term growth strategy is building neo-lending products with partners, to meet specific consumer need gaps. These innovative products would drive inclusiveness, by enabling underserved segments to access credit and over the long-term, strengthen the lending ecosystem
Paisabazaar.com, India’s largest lending marketplace and credit score platform, and SBM Bank India, the youngest universal Bank, today announced the launch of Step Up Credit Card – a credit-builder product designed for consumers with limited access to formal credit, due to ineligible credit score.
A key part of Paisabazaar’s long-term growth strategy is building neo-lending products with partners, to meet specific consumer need gaps. These innovative products would drive inclusiveness, by enabling underserved segments to access credit and over the long-term, strengthen the lending ecosystem.
The Step Up Credit Card, built in partnership with SBM Bank India, is the first product to be launched under Paisabazaar’s neo-lending strategy. A secured card provided against a fixed deposit (with SBM Bank India), Step Up Card helps consumers with damaged credit or those with no credit history to steadily build their Credit Score. While responsible use of Step Up Credit Card enables consumers to reach a strong Credit Score, it also allows them to enjoy the benefits of a credit card, and earn strong returns on their fixed deposit.
Neeraj Sinha, Head, Retail & Consumer Banking, SBM Bank India, said, “At SBM Bank India, we believe smart banking – is a combination of technology and banking as a service, solves problems and empowers people. In India, the penetration of credit cards is low owing to a lack of credit history and high delinquencies. We partnered with Paisabazaar to design a product that solved both these challenges – backed by a fixed deposit, it not only protects the quality of the assets but also helps build the credit score. We conducted a pilot program which witnessed great results and today we are launching the card for everyone.” Consumers can take the Step Up Credit Card on the Paisabazaar platform through a completely digital and paperless process, with instant issuance and activation. Paisabazaar and SBM Bank India are also creating a program that would enable revisions in credit limit, based on consumer usage and behaviour through the Step Up Credit Card.
Source: Business World