Xiaomi will launch its Mi Credit platform for personal loans in India on 3 December. The Mi Credit service was announced in May last year. Now, the Chinese handset manufacturer is likely to unveil a new version of the service for Indian users. Read on to learn all about the new service before the Mi Credit launch.
Mi Credit essentially acts as a platform for instant financial lending to users. As mentioned, it was first announced back in May 2018. Xiaomi is not offering loans, but simply connecting the user to a service that will offer loans. The company is partnering with Bengaluru-based startup KreditBee for service.
The companies claim to be able to initiate a loan within 10 minutes with a simple KYC verification process. Users can Apple for loans up to Rs 1,00,000, with interest rates starting at 1.8 percent. Xiaomi also clarifies that user information and verification is done on partner platforms, and Mi Credit only lists agents.
Although the service remains to be fully launched, some reports highlight potential privacy issues. These reports claim that Xiaomi uses phone activity data to create a credit profile for its users. Some data collection includes “identity, standard of living, lifestyle, social relationships, and brand loyalty.”
Customers signing up for the service share their personal data such as educational professional and educational background ‘, for temporary message history’, and more. Users also end up sharing information related to “usage of certain apps and websites”. Users who sign the agreement also require consent to share their data with third-party service providers. Lifestyle changes, such as promotions or divorces, are also monitored by the company as part of its approach to credit scoring.