The differentiating factor in Xiaomi’s partnership is that it is exclusively for own phone users — other Android users cannot use the service. This could be aimed at boosting phone sales further.
The company is the leading smartphone
vendor in India, with a market share of 31.1 per cent, followed by Samsung’s 25 per cent, shows IDC’s latest data.
In this regard, Xiaomi
is looking at launching more of value added services, after Mi Music and Mi Video. Manu Jain, managing director at Xiaomi India, says they are looking to further expand its MIUI platform, to provide 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 better user experience,” he said about the launch of Mi Credit.
Adding: “Mi Credit is another big step in bringing an important internet service to India and we trust our users would be able to truly benefit as the service becomes more sophisticated.”
A Xiaomi spokesperson told Business Standard
that its partners are responsible for collecting and verifying all application information from users -- as mentioned earlier, the company’s role is limited to providing a platform. Users have been seeing offers for a loan on their phones since the launch of Mi Credit.
They are redirected to the company’s site on clicking the link, which then collects information and the process of a loan is initiated. While applying, it is important to read the fine print on the site, for clauses such as the processing fee. KreditBee charges one of Rs 100 to Rs 1,000, depending on the loan amount. This is deducted from the loan principal upfront before it is disbursed to the user.
Xiaomi didn’t answer queries sent by Business Standard on expansion plans, regulatory space for the product and the interest rates on offer.