E-commerce major Flipkart said it has launched a financial assistance programme for its merchants to help them secure capital to expand their business online.
Online shopping portal, Flipkart has launched a financial assistance programme for its merchants to help them secure capital to expand their business online.
Under the 'Growth Capital Initiative', Flipkart has partnered Bajaj Finserv, Axis bank, NeoGrowth, Lendingkart and Capital First to enable entrepreneurs fulfill their business aspirations.
The company has already helped SMEs secure loans totalling about Rs 4 crore in the pilot phase.
"Lack of funding has often emerged as one of the key hurdles for small businesses. In fact, most of the lending organisations consider them as 'un-bankable' which results in a lot of SMEs closing down or borrowing from other sources at higher rates," Flipkart Chief Business Officer Ankit Nagori told PTI.
This new initiative will develop an open platform and ecosystem of financial services for sellers that will be governed by the market forces with Flipkart playing the role of a curator, he added.
Flipkart's rivals, Snapdeal and Shopclues, also have similar programmes that connect small and medium businesses with lenders to access capital more conveniently.
Under Flipkart's initiative, SMEs can secure loans between Rs 1 lakh to Rs 1 crore with interest rates as low as 12 per cent per annum.
Launched in October, 2007, Flipkart has 30,000 sellers and over three crore registered customers.
Snapdeal had launched its financial assistance scheme last year while ShopClues unveiled its initiative in June this year.
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