New Delhi, Nov 9 (IANS): Financial services platform Paytm on Monday announced to double its loan disbursements for the micro- and small and medium enterprises (MSMEs) from Rs 550 crore in last fiscal year to Rs 1,000 crore by March 2021.

The company expanded collateral-free loans of up to Rs 500,000 at a low-interest rate and unique daily EMI product customised for micro-merchants.

"With our collateral-free instant loans, we are trying to help kirana stores and other small business owners who have been left behind by the traditional banking sector and do not have easy access to loans and credit," said Bhavesh Gupta, CEO, Paytm Lending said.

Paytm continues to lead the offline payments (P2M) segment with over 50 per cent market share by offering all digital payment methods.

The recently launched Paytm All-in-One Android POS device has enabled over two lakh MSMEs to accept all payment modes, the company informed.

The company said it will continue to offer collateral-free loans under the ‘Merchant Lending Programme' in Paytm for Business app.

Paytm said it has digitised the entire process starting from the loan application, approval to disbursal with no additional documents required in partnership with NBFCs and banks.

In the last financial year, the company processed loans worth Rs 550 crore, benefiting over a lakh merchant partner.

"Going forward, we will especially focus on EDC merchants and provide higher loan amounts based on their EDC transactions," Gupta said.