E-commerce channels are joining hands with non-banking lenders to raise loans for sellers
E-commerce rulers like Flipkart, Amazon, Snapdeal and eBay are tying up with non-banking money lenders for giving out loans to sellers who are keen to sell products through these online channels. This initiative is taken to encourage more number of sellers to use their platform for selling their products.
Various new age non-banking financing companies like Neo growth, Capital float and Capital first have come up in the market. Other online finance companies such as Lendingkart and loan facilitators like SMEcorner, are joining hands with ecommerce players to offer sellers quick and hassle free loans. SMEcorner has tied up with Flipkart, eBay, Paytm and Snapdeal so as to be a catalyst in securing easier loans for sellers.
“Small businesses struggle to get loans. With ecommerce becoming more main stream, it is encouraging several entrepreneurs to set up businesses online,” SMEcorner founder and chief executive Samir Bhatia told PTI.
Other than SMEcorner there is Lendingkart which currently raised USD 10 million and has tied up with the major e-commerce players to offer easy loans to sellers who demand loans more than 1 lakh.
According to a recent study by the Union MSME ministry, only 6 per cent small businesses get finance from organised lenders, indicating the difficulty of small businesses to get loans.
The nation’s largest bank, Sate Bank of India tied up with Amazon India to help sellers to have easy access to loans.
eBay last year tied up with CAIT, representing self-employed traders. There are over six crore traders in CAIT. This partnership with SMEcorner will at least fulfill the needs of 50,000 sellers estimated to be listed on e-Bay.
PTI reports tell that both the e-commerce giants – Flipkart and Amazon had revealed earlier this year that they had aimed to double the number of sellers to 1 lakh each. Snapdeal is targeting to get over 10 lakh sellers in the next three years.