Xiaomi plans to launch money lending services in India, seeking RBI approval

Xiaomi is apparently seeking approval from the RBI to operate as a non-banking financial company.

After changing the face of the Indian smartphone market, Xiaomi is now reportedly planning to enter the consumer finance and business-to-business lending sector.

According to a report by Economic Times, Xiaomi is apparently looking to float a non-banking financial company (NBFC), called Xiaomi Financial Services India, which will soon seek the Reserve Bank of India’s approval to operate as an NBFC.

Xiaomi founder, Chairman and CEO Lei Jun (2nd R) attends the listing of the company at the Hong Kong Exchanges in Hong Kong, China July 9, 2018.

Xiaomi founder, Chairman and CEO Lei Jun (2nd R) attends the listing of the company at the Hong Kong Exchanges in Hong Kong, China July 9, 2018.

An NBFC does not let you deposit your savings and invest in mutual funds, however, it will provide loans for all sorts of purchases you want to make. For instance, according to Xiaomi’s reported regulatory disclosure, its financial services company will lend money to consumers for purchasing electronics, home appliances, lifestyle products, vehicles, furniture, tools, utensils and office equipment, and give credit to firms, corporates or any other entity.

The report also mentions that Xiaomi will be operating these lending services through the online platform.

In line with the reported plans, in May this year, Xiaomi had announced a partnership with lending platform KrazyBee, together with whom it launched Mi Credit in India.

Now that Xiaomi is preparing to lend the finances to consumers and businesses in India, it is also likely that it brings the wide range of products it sells in China to India as well. Besides smartphones, the company has its own range of merchandise, two-wheelers, water purifiers, and even pens.

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