Introduce Step Up Credit Card as Paisabazaar’s neo-lending strategy


Paisabazaar’s neo-lending products, like the Step-Up Credit Card, are specifically targeted at these large segments, to make them more credit healthy and strengthen their eligibility for future needs. With 100% approval rates, segments who traditionally struggle to get a credit card due to employment type or geography would also be able to use the Step-Up Credit Card and get the benefits of a credit card.

Gaurav Aggarwal, Senior Director,, said, “Along with catering to the needs of underserved segments, ownership of processes and products would help us offer a great consumer experience. Also, data related to usage and behavior would provide key insights and intelligence, enabling us to identify consumer needs more accurately, fostering further innovations.”, India’s top lending marketplace and credit score platform, and SBM Bank India today announced the launch of the Step-Up Credit Card, a credit-builder product designed for individuals who have limited access to formal credit due to an invalid credit score.

Paisabazaar’s long-term growth strategy includes developing neo-lending products with partners to fill specific customer need gaps. These products would increase inclusiveness by allowing underprivileged segments to obtain credit, as well as benefit the lending ecosystem in the long run.

The Step-Up Credit Card, developed in collaboration with SBM Bank India, is the first product to be introduced as part of Paisabazaar’s neo-lending strategy. Step Up Card, a secured card given against a predetermined deposit (with SBM Bank India), assists clients with bad credit or no credit history in steadily building their credit score. While using a Step-Up Credit Card responsibly allows users to improve their credit score, it also allows them to enjoy the benefits of a credit card while earning high returns on their set deposit.

“At SBM Bank India, we think smart banking – being a blend of technology and banking as a service – solves problems and empowers people,” said Neeraj Sinha, Head, Retail & Consumer Banking. Credit card penetration in India is low due to a lack of credit history and significant delinquencies. We collaborated with Paisabazaar to create a product that addressed both of these issues – backed by a fixed deposit, it not only safeguards the quality of the assets but also helps develop credit. We ran a test program with amazing success, and today we are introducing the card for everyone.”

The country’s low penetration of formal credit is reflected in the country’s household debt to GDP ratio, which is much lower than that of established markets such as the United Kingdom and the United States. This is partly because vast portions of India’s population have remained outside of the formal credit system. While large banks and NBFCs have typically served segments such as Salaried Prime well, other large segments such as Salaried Sub-Prime, New to Credit, and SMEs have had limited access to formal credit.

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