Facebook declared a new program, the small business loans enterprise, to help small and medium businesses in India that advertise on the social media platform to get a quick path to credit through independent lending partners.
Facebook has tied up with Indifi, a leading online lending platform providing online business loans in India to small businesses include Travel, Retail, and Restaurant. The program developed with the potential to bring more associates on board. The goal is to make business loans more easily accessible to small businesses and decrease the credit gap within the MSME sector.
The initiative permitted businesses to register over 200 towns and cities in India.
Facebook is strongly engaged in producing economic moments for India’s small businesses. Access to timely capital is more important than ever as it can help them start their restoration and drive growth.
Small Business Loans Initiative can provide a big incentive to early entrepreneurs to fuel their ideas and desire for taking risks.
Further, Facebook is also committed to women-led businesses in India. Small businesses that are fully or partially women-owned can get a special 0.2 percent discount per annum on the applied loan interest rate from Indifi.
The program was completely a not-for-profit method with Facebook’s lending partners, and small businesses are not obligated to spend their loan amount on Facebook advertising.
Last year, Facebook took various steps to support the economic recovery of small businesses. Also allows small businesses, and developing the company’s leading enterprises to help the offline to online campaigns of small businesses.
High and floating interest rates might stop a lot of small businesses from applying for loans. With the association with Indifi, small businesses that promote with Facebook can get loans at a predefined interest rate of 17%-20% per annum. This program will also allow small businesses to apply for loans without security through a quick online application.
Small businesses involved in this program will not be required a processing fee by Indifi.
After acceptance of the offer by Indifi and the completion of the document formalities and five working days, Indifi will disburse the loan amount. Many small businesses face challenges in acquiring loans of below ticket size as they are not viable for many lenders. With this program, small businesses can get loans between INR 5 lakh and – INR 50 lakh.
Facebook is also committed to promoting opportunities for women-led businesses in India to grow and develop.