Flipkart is now aiming to further back its sellers on its lattice by availing them credit facility of over Rs 75 crore in the next few months. Earlier, the company had facilitated its merchants by providing them loan of worth Rs 125 crore in last one year.
The Bengaluru-based company, which has partnered eight financial institutions including Axis Bank, Bajaj Finserv, NeoGrowth, Lendingkart and Capital First to offer collateral-free loans to sellers on its platform, has already disbursed Rs 125 crore worth of loans in the last one year.
As per the company’s statement, under the 'Flipkart Growth Capital' programme, launched in July last year, Flipkart sellers can avail loans with interest rates starting at 11.40 per cent. The programme had received over 3,000 applications in the initial months of the launch and over 800 loans have been disbursed. Mobile, electronics, fashion and fashion accessories are few categories that witnessed highest adoption for the programme.
Informing about the move, Anil Goteti, Vice President, Product, Flipkart said that unavailability of finance is one of the major barriers for the growth of small businesses in both online and offline space. The programme addresses that issue and facilitates company’s sellers by helping them connect with trusted lenders in the industry.
Flipkart is also planning to launch promotional offers with its lenders for the festive season in the following two months. This will enable its sellers to grow their business and provide quality products to millions of customers shopping on the platform, he added.