Mi Credit microloan service from Xiaomi: what is known about the platform
Large Chinese corporation Xiaomi introduced a new microloan service Mi Credit for the Indian market. According to official information, the product is a digital platform where the user can get credit as quickly as possible. This platform is another step of a technological giant to conquer the financial sphere.
The service allows the user to get a loan from $70 to $1400. At the same time, the application processing time is only 5 minutes. The approval process for receiving money does not depend on the credit rating, as it happens with the standard procedure in the bank. All user data is stored in encrypted form and has a high degree of security. Experts already predict the success of the service.
Xiaomi Corporation is not the first electronics manufacturer that has decided to develop a new segment. Many companies are already working in such areas. A vivid example is Samsung, which has created its own payment system. Apple went further – this year they introduced credit cards.
The decision to launch the platform in India was made by Xiaomi’s management for a reason. The corporation is the market leader in this country in terms of sales volumes of smartphones, and holds high positions in other segments. Analysts want to see how the financial business will progress in India, and then launch it in other countries.
Testing of the platform began last year, and during this period it has provided loans worth a total of $3.9 million. At the same time, 20% of users received the maximum possible loan – $1400. In Mi Credit, everyone can choose the period of credit individually – from 90 days to 3 years. The minimum interest rate is $1.35 per month.
While operating the service in a test mode, Xiaomi involved the financial organization KreditBee. Now that the platform is fully operational, Mi Credit has several partners, among which there are quite large financial institutions.
To formalize the credit through the service user needs:
- download and install the application through the Google Play Store;
- create an account using your Mi account or phone number;
- download the necessary documents and fill in personal information. It is necessary for checking the client and is absolutely confidential;
- add the bank details to which the credit money will be transferred. The service supports almost all major banks.
Last year, Xiaomi Corporation changed its development strategy and decided to focus on Internet services. This segment, according to the management, will soon become the main source of income for the company.
In addition, Xiaomi has set a rather ambitious goal – to regain leadership in the Chinese smartphone market within 2 years. In 2016, their products were replaced by competitors represented by Oppo and Vivo.