Xiaomi is all set to launch its Mi Credit for personal loans in India on December 3. This Mi Credit service was first announced in May last year. Now the company is likely to unveil a revamped version of the service for Indian users.
Mi Credit essentially acts as a platform for users to initiate instant financial lending. Xiaomi isn’t offering the loan but is simply linking the user to a service that will offer the loan. The company is partnering Bengaluru-based startup KreditBee for the service.
Customers signing up for the service share their personal data such as ‘professional and educational backgrounds’, ‘temporary messages history’, and more. Users also end up sharing information related to “use of certain apps and websites.” Users signing the agreement also need to consent to their data being shared with third-party service providers. Lifestyle changes, such as a promotion or a divorce, as part of its approach to credit scoring, is also tracked by the company.
The companies claim to be able to initiate a loan in under 10 minutes with a simple KYC verification process. Users can apply for loans up to Rs 100,000, with interest rates starting at 1.8 per cent. Xiaomi also clarifies that user information and verification is done on partner platforms, and Mi Credit only lists agents.
While the service is yet to fully launch. These reports claim that Xiaomi uses phone activity data to create a credit profile for its users. Some of the data collection includes “identity, life stage, lifestyle, social relationships, and brand loyalty.”