<ul><li>Paytm is implementing the First Loss Default Guarantee (FLDG) model to boost lending volumes and profitability.</li><li>FLDG involves Paytm guaranteeing a portion of loans to mitigate risk for lending partners.</li><li>The model helps lending partners expand customer base and issue more loans, especially to borrowers with limited credit history.</li><li>Paytm generates revenue through upfront sourcing fees and collection revenues throughout the loan lifecycle.</li></ul>

Why Paytm is betting on FLDG model to boost lending and revenue

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