As the companies from Facebook Inc. to Xiaomi Corp. seek foothold in what is set to be a $1 trillion industry, India’s digital loan market will become a next battleground for these companies.

In this month, Facebook said that India will be the first country, which offers loans via partnering with firms, which advertise on its platform and rolls out its small business loan program.

The range of loans will be from Rs. 5,00,000 ($6,720) to Rs. 5 million with an interest rate of 17%-20%, without collateral.

The online transactions surged during the pandemic are drawing attention of many tech companies towards digital payments’ market in India.