I have no idea what motivates mobile brands to release their own credit and e-commerce payment systems. Shouldn’t they stick to creating innovative smartphones with futuristic functions? Yet, Samsung and Apple have their own payment portals, may be in a bid to introduce a more personalized experience in banking. But don’t you think we’re better off using third-party e-commerce apps that have better security?
Xiaomi already had Mi Pay, a contactless NFC-based mobile payment system. Now it’s releasing Mi Credit on December 3, although the app is already available in the Play Store. This latest development was announced on Thursday. As the name hints, Mi Credit will be a personal loan platform for Xiaomi users.
Xiaomi has sent outmedia invites for the launch event on December 3. The brand released Mi Credit in India during the month of May, with the help of Bengaluru-based startup KrazyBee. The same product is being featured in the upcoming event. So, what’s so special about Mi Credit that a special event is required to shine light on its presence?
According to Mi Credit users, the service offers personal loans up to Rs 1 lakh to legal adults (those above the age of 18). With interest rates starting from 1.35% per month, Mi Credit users can avail a repayment period of up to 3 years.
The Google Play Store description clears up better how Mi Credit works, “For example, if the loan amount is Rs 20,000, interest charged is 16.2% per annum and the loan is to be repaid over 6 EMIs, then the overall interest payable would be Rs 937 and the EMI per month would be Rs 3423.”
Xiaomi users just have to register on the app using their Mi account. For KYC, they’ll have to upload address proof and ID, then link the bank with the app. Mi Credit lets users check the credit report as well.
Xiaomi’s Mi Credit service is exclusive to users in India. I wonder why the company did not target its users in other countries, especially the US. Now that’s some food for thought.