ShopX, the Retail Network Company, in conjunction with digital lending organization LoanTap, has enhanced its credit offering ShopX Suvidha by launching a digital credit marketplace for its retailers present on the platform, offering loans ranging from Rs 25,000 to Rs 5,00,000. At present, this service is currently available to more than 100,000 small retailers across 16 cities.
Under the credit facility from ShopX, in conjunction with LoanTap, retailers now have access to a digital, completely paper-less model to avail credit as well as one-tap repayment on the amount borrowed. The ShopX Data Platform helps assess the risks, creditworthiness and market valuation of these retailers attached to the ShopX network. This makes the process of getting loans easy, fast and secure.
Amit Sharma, CEO and Co-Founder, ShopX, said, “Our vision for a digital model of commerce necessitates the inclusion of facilities that make it easier for retailers, the backbone of Indian retail, to have access to and avail of credit as they scale and grow their businesses. Through this, we see the opportunity to have the retailer base that works with us further the function of cashless transactions as well as build healthy credit habits.”
Satyam Kumar, CEO of LoanTap, stated, “Credit is an integral pillar of trade. In small retail, there is a focus on frictionless customer journeys. Keeping this in mind, LoanTap, through this partnership, brings a unique solution for retailers in the form of credit that can be availed quickly, at friendly and flexible terms.”
Creating a credit marketplace for retailers
Commencing with LoanTap, ShopX aims to create a credit marketplace for its retailers, thereby including several lakhs of store-owners into the formal banking and credit economy. For long term viability, even the smallest retailer has to become part of the formal banking economy as this allows them to register and improve their credit scores and that in turn fuels growth.
LoanTap acknowledges the significance of the availability of credit in the economy.
As per an RBI report, ‘Trend and Progress of Banking in India 2017-18’, more can be done to accelerate the state of financial inclusion in the country. With Kirana stores constituting a significant portion of the unorganized retail in the country, they become a focal point to accelerate both cashless transactions as well as financial inclusion.