Chinese tech company Xiaomi is set to start offering loans up to Rs. 1 lakh with an interest rate of 1.8%. The company plans to leverage its pole position in the domestic smartphone market.
The company uses smartphone data to create credit profile using data collected from their phone’s temporary messages history and use of certain apps and websites.
Last year the company had to back out of the Indonesian market due to privacy concerns raised by their potential banking partners. Though it claims that user data protection is their utmost priority,
Experts feel that the lack of data privacy law may leave Indian customers vulnerable and at high risk.