After disrupting the electronics market in India with smartphones, TVs, and whatnot, Xiaomi has entered the financial space with two new services; Mi Pay and Mi Credit. While Mi Pay is based on UPI for payments and prepaid services, Mi Credit is for lending money. Mi Credit was announced in September last year, which was available to select MIUI users to test the market response. Now Xiaomi has launched the Mi Credit app to all Xiaomi users running MIUI. Mi Credit will allow consumers to borrow personal loan up to 1 lakh rupees instantly into their bank account, and the process is entirely digital. In this article, we are going to tell you all about Mi Credit and how you can use it get instant loan.
Mi Credit is a personal financing service where consumers can take a loan through their mobile phones and pay back in monthly installments. It’s just like the traditional banks, but the process is completely digital and the loan disbursement is instant. Here are the important points that you need to know about the service before using it.
How to Use Mi Credit
Open Mi Apps on your Xiaomi device and search Mi Credit. Now, install the app.
Here, you will have to enter all the required documents. First, scan your PAN document and enter your details. After that, scan and enter your address proof document.
Mi Credit vs Other Instant Personal Loan Services
While Mi Credit is new and targeting its own set of MIUI users, the Indian market is flooded with digital lending services which can be availed by anyone with a steady source of income. Services like Indiabulls Dhani, KreditBee, and LazyPay are among the most popular choices for borrowers. In this section we will compare the new entrant, Mi Credit, to see where it stand against the competition.
In terms of availability, Mi Credit is available only to MIUI users which is a subset of Android users. KreditBee is also limited to Android only. Whereas, Indiabulls Dhani and LazyPay are available both on Android and iOS. As we can see, Mi Credit has a tough nut to crack if it limits itself to a closed ecosystem. The digital lending space is already filled with scores of players, and it will be better if Xiaomi opens up the service for everyone.
Mi Credit Interest Rate
In terms of monthly interest rates, Indiabulls Dhani charges interest from 1% to 3.17% with maximum tenure of 36 months; KreditBee interest rate ranges from 2% to 3% with a maximum tenure of just 6 months; and LazyPay charges interest from 1.25% to 2.3% with a maximum tenure of 24 months. As we can see, Mi Credit is better positioned here with 1.3% to 2.5% interest rates with 36 months of tenure. Nonetheless, Xiaomi has to fight these players with a low processing fee, and better customer service to create a loyal customer base.
Coming to tie-ups with e-commerce services like food delivery, taxi, and shopping, LazyPay wins hands down. It has integration with MakeMyTrip, Flipkart, Swiggy, BookMyShow, and other popular services. Whereas, Mi Credit, Indiabulls Dhani or KreditBee don’t offer any kind of pay later option with its line of credit. In the future, we hope Mi Credit expands its footstep and ropes in various services under its umbrella.
Mi Credit is an exciting product by Xiaomi and it has the potential to help out people in monetary need. The interest rates are similar to industry standards, but better customer service and no hidden charges will make it a preferable service just like its smartphones. At the moment, no company understands India better than Xiaomi given its growth in offline market and inroads into Tier II and III cities.
