Google Pay (GPay) has partnered with Aditya Birla Finance and Muthoot Finance to offer personal and gold-backed loans in India, enhancing access to credit for both individuals and merchants. This collaboration, revealed at the 10th edition of the “Google for India” event, seeks to tackle the ongoing challenge of obtaining credit, especially for those without established credit histories.
The partnership will enable users to secure personal loans starting at Rs 10,000, making it easier to meet financial needs like medical emergencies or travel expenses. Gold-backed loans, managed by Muthoot, offer an alternative for users who possess gold, allowing them to leverage this asset for easier access to credit at lower interest rates. Muthoot will also oversee the management and safeguarding of pledged gold, while GPay facilitates the connection between borrowers and lenders.
Sharath Bulusu, Director, Product Management, Google Pay, highlighted the cultural and financial significance of gold in India. The project not only provides immediate financial solutions, but also helps users build credit histories, offering a pathway to formal credit channels. Many Indians still prefer collateral-backed loans due to their lower interest rates, even after establishing a credit profile.
This initiative is part of Google’s ongoing efforts to enhance financial inclusion by combining digital technology with traditional financial services, giving users greater flexibility and access to loans. With GPay playing a major role in UPI transactions, this move is expected to expand loan availability and improve financial accessibility for millions across India.
