Xiaomi to launch consumer lending products in India

Friday 23 August 2019 00:10 CET | News

Xiaomi, a large mobile phone vendor based in China, has announced plans to launch a consumer lending business in India.

Xiaomi’s new Mi Credit service in India is scheduled to debut in the coming weeks. The service aims to offer loans of up to 100,000 rupees (USD 1,451) with interest rates starting at 1.8%. At the moment, Mi Credit operates in ‘beta phase’, a Xiaomi spokesman told Reuters.

India is Xiaomi’s largest market outside China, and it boasts an installed base of some 70 million phones there, according to market researcher Counterpoint.

The Chinese phone maker uses data from phone activity to create credit profiles based on a customer’s identity, life stage, lifestyle, social relationships, and brand loyalty, according to documents seen by Reuters. Since this practice has raised data privacy concerns, consumers who apply for the services in India sign broad agreements consenting to share their personal data with Xiaomi.

This info includes data such as professional and educational background, temporary messages history, and information related to ‘use of certain apps and websites’.

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Keywords: Xiaomi, financial services, smartphones, India, China, data privacy, consumer lending, data sharing, UX
Countries: World