Anyone who has tried applying for a loan understands the hassles involved. From extensive paperwork to a lengthy verification process, getting a loan approved is a tiresome task. But Google has stepped up to simplify this process by partnering with major private banks in the country and letting its users avail instant bank loans seamlessly.

At the annual Google for India event on Tuesday, Google made several announcements that are tailored for the Indian audience and one of the biggest highlights is the rebranding of its payments app along with crucial updates. Google Tez is renamed to Google Pay, which now comes with new features and partnerships.

The most highlighted feature of Google Pay is its instant loan dispersals. Google has partnered with four major Indian banks, including ICICI Bank, HDFC Bank, Federal Bank and Kotak Mahindra Bank, to offer customised loans to Google Pay users with minimal paperwork and secure and instant deposit.

Caesar Sengupta, Vice-President, Next Billion Users initiative and Payments, Google, at Google for India event on August 28, 2018.
Caesar Sengupta, Vice-President, Next Billion Users initiative and Payments, Google, at Google for India event on August 28, 2018.Google

Google said that users of its payments app will be able to avail pre-approved loans "in a matter of seconds." Users can apply for a customized loan and get the money deposited directly into their bank account after accepting to the bank's terms.

Google currently has 22 million monthly active users on Google Pay with over 750 million transactions with average annual transaction of 2 lakh crore. Google Pay has been downloaded by over 55 million people, which is still far behind Paytm's 150 million app downloads.

By introducing instant bank loans and expanding Google Pay's reach to online and offline merchants, including Redbus, BookMyShow, Mi, Goibibo, Big Bazaar and eZone, it remains to be seen if Google can fill the gap between Google Pay and Paytm.

The digital payments industry is booming big time, with players like WhatsApp and Jack Ma's Ant Financial, there's intense competition in this space. Major tech giants' interest in the digital payment is justified as experts estimate the market to go from $200 billion industry to $1 trillion by 2023, Credit Suisse Group AG recently reported.