The program is designed specifically to enable financial inclusion for medium and small enterprises (MSMEs) who operate online.Government estimates suggest that there are over 60 million MSMEs in the country. For many of these, securing finances is challenging.
Flipkart has said that its seller financing program, Growth Capital, will now allow over one lakh sellers to avail credit from 10 non-banking financial companies within 48 hours. These loans will be charged an interest rate of 9.5 percent.
The program is designed specifically to enable financial inclusion for medium and small enterprises (MSMEs) who operate online.
“Small businesses are the backbone of our economy and being a homegrown company, Flipkart is committed to helping sellers all across India grow. 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. 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 Kalyan Krishnamurthy, chief executive officer of Flipkart.
Government estimates suggest that there are over 60 million MSMEs in the country. For many of these, securing finances is challenging. The Growth Capital initiative aims to fill the gap between financial institutions and the underserved, through technology and the digital economy.
Financial partners for the program 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.
Majority of the loans are used by the sellers to meet working capital requirements and demand spikes. The average loan size is Rs 7 lakh.The tenure on term loan and line of credit options is upto 12 months.
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