No, the Payment Banks cannot give loans. Payment Banks are also not authorised to issue any credit card, and cannot accept recurring or fixed deposits. You can read about the Payment Banks- History & Regulations (UPSC Notes) in the given link.
Payment Banks can provide services like mobile banking, ATM cards, debit banks, net banking.
- RBI – Reserve Bank of India [UPSC Indian Economy Notes]
- Bad Banks – Idea Proposed by Indian Banking Association (IBA) Due to COVID-19