With this offering, Kenghe emphasized, Google Pay wants to open a way for lenders to take credit and weather the ongoing financial crisis stemming from COVID-19.
"We're working with our partner financial institutions to surface their loan offerings for merchants, which can be availed right within Google Pay, something that is especially pertinent in these uncertain times," he said.
While Kenghe did not talk about the banks that are working with Google, we expect the company might choose the same partners that were picked for its consumer loan offering, namely HDFC Bank, ICICI Bank, Federal Bank, Axis Bank and Kotak Mahindra Bank.
Also, just like consumer loans, the onus of underwriting and collection of installments would still remain on the partner banks.
Notably, the Google executive also said that the loan offering is just one of the many initiatives that have been planned for SMEs.
The effort comes in a bid to draw small businesses, which continue to shift from offline to online for product marketing, selling, payments, and more. The developments have made India's SME sector a lucrative target for big technology giants.