Through its seller financing program, 'Growth Capital', Flipkart will allow its over one lakh sellers to avail loans from 10 non-banking financial companies (NBFC) within 48 hours. The interest rate on these loans will be 9.5 percent.
The credit program was launched with focus on assisting medium and small enterprises (MSMEs) who operate online. The aim in enable financial inclusion of small businesses.
"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 CEO, Kalyan Krishnamurthy.
India has an estimated 60 million MSMEs (Micro, Small & Medium Enterprises) and financing these businesses has been a challenge for a long time now.
Flipkart's financial partner in the 'Growth Capital' initiative 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.
The average loan size is Rs 7 lakh, while the tenure on term loan and line of credit options is up to 12 months.