Sellers on e-commerce major Flipkart platform can now get loans at competitive interest rates from banks and non-banking financial companies (NBFCs) within two days, a move that is likely to benefit more than one lakh micro, small and medium enterprises (MSMEs).
The sellers can avail loans up to Rs 3 crore at an interest rate of 9.5 per cent for one year from 10 banks and NBFCs.
Government estimates suggest that there are over six crore MSMEs across the country. For many of these, securing financial access and liquidity is challenging. Flipkart's initiative aims to fill the gap between financial institutions and the underserved through tech and the digital economy.
"Small businesses are the backbone of our economy. Being a homegrown company, Flipkart is committed to helping sellers all across India grow," said company's Chief Executive Officer Kalyan Krishnamurthy.
"Our knowledge and understanding of the Indian ecosystem allow us to construct frameworks such as 'Growth Capital' through which sellers can scale their businesses, prosper, create more employment opportunities, and continue to transform the country's economy," he said in a statement on Thursday.
The Growth Capital Programme requires minimal documentation and has a seamless application process. Financial partners include State Bank of India, Bank of Baroda, Axis Bank, Aditya Birla Finance, Tata Capital, Flexiloans, Small Industries Development Bank of India, LendingKart, Indifi and Happy Loans.
"This is part of Flipkart's core mission of developing shared value in the ecosystem and helping digitise India through the latest tech and innovations," said Krishnamurthy.
The Flipkart Group includes group companies Flipkart, Myntra, Jabong, and PhonePe. Launched in 2007, Flipkart has enabled millions of consumers, sellers, merchants and small businesses to be a part of India's e-commerce revolution. The group has a registered customer base of over 15 crores, offering over eight crore products across more than 80 categories.
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