In order to encourage more sellers to connect to their online channels, the e-commerce portals such as Flipkart, Amazon, Snapdeal and eBay are partnering with non-banking lenders. This is a move to extend the loans to those who are interested in selling their products via the online marketplaces.
There are several new-age non-banking finance companies (NBFCs) including Capital First, Neo-Growth and Capital Float. Also, there are online finance companies including Lendingkart and loan facilitators such as SMEcorner. These companies are partnering with the e-commerce portals to provide sellers hassle-free and quick loans.
Regarding this, Samir Bhatia, the Founder and Chief Executive of SMEcorner stated that small businesses struggle hard to get loans. The e-commerce business is more mainstream and it is encouraging the entrepreneurs to establish their businesses online. SMEcorner patterned with e-commerce players including Flipkart, Snapdeal, Paytm, eBay and many others in order to play a catalyst role that will spur easier loans or the sellers.
The e-commerce portals have also teamed up with numerous leading on-banking finance companies (NBFCs). Recently, Lendingkart raised $10 million of funds from PE funding and the company also tied up with the portals including Amazon, Snapdeal and Flipkart in order to provide loans to sellers who seek funds of over Rs 1 lakh.
As per a recent study by the Union MSME ministry, just six percent of the small businesses receive finance from the organized lenders pointing out at the difficulty that the small businesses have to go through to get loans.
Back in May, the State Bank of India, the largest lender in the country jumped to the bandwagon of e-commerce. The lender partnered with the portal Amazon India in order to facilitate providing easy loans that will help the e-commerce sellers. The process of securing loans for the sellers is a high priority for the competing online portals.