After disrupting the electronics market in India with smartphones, TVs and the like, Xiaomi has entered the financial space with two new services; Mi Pay and Mi Credit. Mi Pay is based on UPI for payments and prepaid services, while Mi Credit is for lending money. Announced in September last year, Mi Credit was made available to select MIUI users to test the market response. Now Xiaomi has launched Mi Credit app to all Xiaomi users running MIUI. Mi Credit will allow consumers to instantly lend personal loans up to 1 lakh rupees to their bank accounts, and the process is completely digital. In this article, we will tell you everything about Mi Loan and we will tell you how you can get a loan instantly.
What is Mi Loan?
Mi Credit is a personal finance service. Consumers can take out loans from their mobile phones and pay them back in monthly installments.. Just like traditional banks, but the process is completely digital and the loan payment is instant. Here are the key points you should know before using the service.
- Mi Credit is Xiaomi’s secure, instant personal loan service.
- It can be used by all Xiaomi users running MIUI.
- You can get a loan of up to 1 lakh rupees with real-time payment.
- The interest rate varies between 1.3% and 2.5% per month. The maximum loan term is 36 months.
- You will need to provide your PAN, proof of address, source of income and bank account details.
- You will need to pay the EMI by the 5th of each month.
- The loan is unsecured, meaning you don’t have to provide any security in terms of property. However, you will need to pay a processing fee to take advantage of the loan.
How to Use Mi Credit
1. Open Mi Apps on your Xiaomi device and Find Mi Credit. Install the app now.
2. Launch the Mi Credit app and go through the welcome screen. Later on, grant all permissions.
3. On the next screen, Tap the Get Now button and enter your phone number. Now enter OTP and continue.
4. Here you will need to enter all the required documents. Firstly, Scan your PAN document and enter your information. After that, scan and enter your proof of address document.
5. Finally, upload your selfie and go. Your credit profile will be created and checked for eligibility.
6. Allows you to continue with more documents if you are eligible, such as bank account and salary details. After that, you will be able to initiate the payment directly into your bank account. In our tests, the system did not find eligibility for the loan and it was recommended to re-apply after 60 days.
Mi Loan and Other Instant Personal Loan Services
Although Mi Credit is new and aimed at its own MIUI user group, the Indian market is brimming with digital credit services available to anyone with a steady source of income. Services like Indiabulls Dhani, KreditBee, and LazyPay are among the most popular options for borrowers.. In this section, we’ll compare the new entrant Mi Credit to see where it stands against the competition.
Mi Credit Availability
In terms of usability, Mi Credit is only available to MIUI users, a subset of Android users.. KreditBee is also limited to Android only. Whereas, Indiabulls Dhani and LazyPay are available on both Android and iOS. As we can see, if Mi Credit confines itself to a closed ecosystem, there is a hard nut to crack. The digital lending space is already full of players and it would be better if Xiaomi opened the service for everyone.
For testing purposes, we went ahead and Extracted Mi Credit APK from Redmi Note 7 Pro and installed the app on non-Xiaomi devices host and it went through the installation. We installed the APK on Mi A1 running rooted Oreo, Redmi Note 5 Pro running custom ROM, and Pixel 2 XL running Android Pie. We were able to register and continue documentation on all devices. To make things even more interesting, We found that Google Play Store was mentioned in the FAQ of the app.so yes, Mi Credit is coming to all Android devices, but you’ll have to wait for the official release.
Note: If you want to test Mi Credit on your non Xiaomi device, Download APK here. Remember that this is a financial application, so you should proceed with caution.
Mi Loan Interest Rate
In terms of monthly interest rates, Indiabulls Dhani charges from 1% to 3.17% with a maximum term of 36 months; KreditBee interest rate ranges from 2% to 3% with a maximum maturity of only 6 months; and LazyPay charges interest from 1.25% to 2.3% with a maximum maturity of 24 months. As we have seen, Mi Credit is better positioned here, with 36-month terms and interest rates of 1.3% to 2.5%.. However, Xiaomi has to battle these players with low transaction fees and better customer service to build a loyal customer base.
Integration with Other Services
Coming to merging with e-commerce services like food delivery, taxi and shopping, LazyPay is definitely a winner. It has integration with MakeMyTrip, Flipkart, Swiggy, BookMyShow and other popular services. Whereas Mi Credit, Indiabulls Dhani or KreditBee do not offer any pay-after option with line of credit. In the future, we hope that Mi Credit will expand its steps and threads in various services under its umbrella.
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Excited for Xiaomi’s Mi Loan Service?
Mi Credit is an exciting product from Xiaomi and has the potential to help people who need money. Its interest rates are similar to industry standards, but better customer service and no hidden fees will make it a preferred service like their smartphone. Currently, no company understands India better than Xiaomi, given its growth in the offline market and entry into Tier II and III cities.
We hope Xiaomi will continue to push the boundaries and bring more India-specific products and services that can benefit its broad consumer pool. So, do you like Xiaomi’s new service and how excited are you to use Mi Credit? Let us know in the comment section below.