• Company Updates
Smart phone company gets in the small loan business
By Liu Yiyi ( chinadaily.com.cn )
Updated: 2015-07-03

Xiaomi, one of China's major smart phone manufacturers started a small loan company recently that will provide convenient, fast small loans as part of its continuing exploration of different business models.

One of Xiaomi's wholly-owned subsidiaries overseas put $50 million into the new small loan company, which plans to provide loans of anywhere from?one yuan ($0.16) to 30,000 yuan ($4,836), with the focus on individual businesses. Clients can apply for a loan through their mobile phone, with the amount to be decided by the credit rating of the would-be borrower. The higher the rating, the lower the cost of the loan will be.

This form of small loan is intended to be more convenient, somewhat like a credit card so that, for example, if a person wants to buy a purse costing 20,000 yuan ($3,224) but does not have the cash,?the person?can apply for a small loan from Xiaomi and pay it off within a certain time with zero interest.

The small loan company estimates that it will attract nine million clients and issue two billion yuan ($322.4 million) in loans by the end of the year and, by 2017, should have 80 million clients, and 75 billion yuan ($12.09 billion) in loan, and revenues of 15 billion yuan ($2.42 billion).

The company with headquarters in Chongqing got a national Internet license not long ago and plans to develop the business nationwide.

 
 
 
 
 
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