Google has announced plans to introduce digital lending services in India in partnership with multiple domestic banks.
The company will launch the digital lending services in partnership with HDFC Bank, ICICI Bank, Kotak Mahindra Bank and Federal Bank.
The initiative is part of Google’s larger plan as the company’ has rebranded its payments app Google Tez as Google Pay in the country.
In partnership with the privately-owned banks, the company will offer instant pre-approved loans to the customers through the revamped app.
US-based company The Mountain View has upgraded the Google Tez app, which was launched in September last year.
The revamped app incorporates various new features and payments services including the digital lending offering.
After disbursement, the loan amount will be directly deposited into the user’s bank account.
“In the coming weeks, these customers will be able to use Google Pay to take out a customised loan amount from their banks, with minimal paperwork, and once they accept the bank’s terms, the money is deposited securely and instantly by their bank, into their bank account,” Google general manager (payments) Caesar Sengupta was quoted by the livemint.com as saying.
In a blog post, Google stated that since the launch of payments app Tez, more than 22 million people and businesses used the app to make transactions that are collective worth around $30bn annually.
It added that currently Google is working to unify its payment portfolio globally and rebranding Tez into Google Pay is part of that initiative.