Xiaomi is everywhere, taking over from Smartphones to personal care as well.
Maintaining them into diverse industries, their quarter results are not up to the mark.
To keep up the mark, they have even considered Ads on to their MiUI as well. Now, Mi got into the Financial Market as well.
The company might find a way to get to earn more money in every segment, including Finance.
Xiaomi Launches platform for providing Loans
Finance itself states to offer to provide loans to the users to make long term profits.
However, this idea was not at a new age. Mi launched Mi Pay to their users back in 2018 which was exclusive to the Mi users.
It is built-in support of UPI, in which you can send and request money. Along with that, you can also pay all your recharge bills, DTH and many more.
With the partnership of other companies like KreditBee Mi invested around $8 Million.
At present, Mi is coming up with the Beta version which will be unveiled within some weeks.
Mi credit was on track on September 2018, in which users can get a loan that too from the third party service mentioned in the Mi Credit App.
With the interest rate of 1.8, users can get a loan up to Rs. 1,00,000.
Reason for getting into Finance
When you have a vast user base, you can keep up new ways to expand your business. As same, Mi has an installed user base of 70 Million, which can create a significant impact on its trail.
Major Drawback of Mi Credit
Banks usually go through the credit score, and based on that you will be getting the loan. If your credit score lags, you won’t be eligible to get the desired amount of investment.
With, Mi they will get to access all your private information to judge your Lifestyle, spending, Sometimes chats even. Based on that, users will be eligible to avail the credit amount.
This can be a huge issue or can even backfire if the majority of the people decided not to share their private data to Mi. Because at present users are more concerned about their individual and personal data.
In my opinion, they have to take a different approach to provide loans to Mi users. They can even take the credibility of their bank statement and give a loan based on their salaries. The whole intention of Mi is to take over the Financial Market then they need to take into consideration the credit score or bank statement to offer loans.