Snapdeal.com, will now provide instant loan approval facility on its seller financing platform, Capital Assist, the New Delhi-headquartered company..
Jasper Infotech, which owns and operates India's largest online marketplace Snapdeal.com, will now provide instant loan approval facility on its seller financing platform, Capital Assist, the New Delhi-headquartered company announced on Wednesday.
"Conventional lending process takes few weeks for loan approval, multitude of documents to be submitted by the business and multiple visits and iterations. Our aim is to bring significant efficiencies in this process by making this completely digital," said Vijay Ajmera, senior vice president, Snapdeal.
Capital Assist, which is aimed at providing sellers on its platform access to funding to meet their working capital needs, among others, as they look to expand their businesses, was launched by the online marketplace in August last year.
According to a press statement released by Snapdeal, the loan application process will be concluded in four steps, where prospective applicants can apply for loan on Snapdeal's seller panel, followed by online approval of loan from financiers within minutes of sellers filing their applications.
Once the required documents are submitted by the applicants, a process that can be done online as well, the loan amount will be disbursed the same day.
"It will further increase the ease of doing business for SMBs by providing them access to capital at the click of a button and help them grow their business," Ajmera said.
Earlier this month, Snapdeal tied up with non-banking finance company (NBFC) Tata Capital, a partnership that will see merchants transacting on the company's platform, have access to loans ranging between Rs 5 lakh and Rs 2 crore.
It also signed a Memorandum of Understanding (MoU) with state-owned, small and medium enterprises-focused financial institution, Small Industries Development Bank of India (SIDBI), a tie-up that saw the latter join other leading banks and non-banking financial institutions, including, State Bank of India, Axis Bank, ICICI Bank, HDFC Bank, RBL, Religare and L&T Finance, to provide credit to SMEs.
The company has claimed that under the Capital Assist programme, more than 300 Snapdeal sellers have benefited from the initiative, with loans of over Rs 100 crore sanctioned till date.
"This programme has particularly benefited first generation entrepreneurs. We will continue to work towards empowering the SMEs to help them expand their businesses, tap wider opportunities and encourage the spirit of entrepreneurship among them," Ajmera was quoted as stating in the press release.
In March, Snapdeal had announced that sellers on its marketplace platform had raised about Rs 50 crore through the Capital Assist initiative, and close to 150 of its sellers had benefitted from the programme.
Snapdeal, which is backed by a list of marquee investors, such as Japan's SoftBank, eBay, PremjiInvest and BlackRock, amongst others, currently has about 150,000 sellers on its platform, and has a stated aim of bringing a million sellers on board over the next two-to three years.
Financial services are an increasingly critical area for Snapdeal, which is currently in the process of evolving from just an e-commerce company, to creating a complete ecosystem of products and services.
In April, the company picked up a majority stake in digital financial services platform RupeePower.com for an undisclosed sum.
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