Xiaomi to launch its personal loan platform ‘Mi Credit’ in India

Xiaomi’s ‘Mi Credit’ service offers loans up to 1 lakh and to users above the age of 18. The personal loan platform will be officially launched in India next week.

Xiaomi’s Mi Credit service launch. (Xiaomi)

Xiaomi on Thursday announced the launch of 'Mi Credit' in India. As the name suggests, Mi Credit is Xiaomi's personal loan platform for Mi users which will be available in India soon.

Xiaomi sent out media invites for its Mi Credit launch which will take place on December 3. This is however not the debut of Mi Credit in India. Mi Credit app is already available in India and it can be downloaded from Google Play Store for Android users. The company had soft launched Mi Credit in India last May and for which it partnered with Bengaluru-based startup KrazyBee, according to a report by Inc42. While this is the same product, Xiaomi will officially launch Mi Credit in India.

How Mi Credit works

Mi Credit offers personal loans up to 1 lakh to users above 18 years old. Xiaomi offers a repayment period of 91 days to 3 years with interest rates starting at 1.35% per month. "For example, if the loan amount is ₹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 ₹937 and the EMI per month would be ₹3423," Xiaomi explains in its app description on Google Play.

Users can register using their Mi account or phone number and upload KYC documents like ID and address proof. Users will also be required to add their bank details for the funds transfer. Xiaomi also lets users check their credit report on the Mi Credit app itself.

Xiaomi's Mi Credit service is currently available only to Mi users in India. There is no confirmation on whether Xiaomi will extend its loans service to other users as well. The company has partnered with financial loan providers for its credit service.