Friday, June 10 2022

Credit and financing for MSMEs: In December last year, Amazon announced that it had passed the 10,000,000 seller mark in India. It is important to note that over 90% of sellers on Amazon.in are small and medium businesses and over half of these sellers come from Tier 2 and Tier 3 cities.

Credit and financing for MSMEs: Digital MSME lender Lendingkart on Tuesday announced a partnership with Amazon India to provide performance-based working capital credit to marketplace sellers. Lendingkart said Amazon India Seller Credit would be available with minimal documentation and flexible repayment options. Sellers will need to provide their contact information to complete the loan application process. Credit underwriting for vendor loans will be done by Lendingkart which claims to have a database of 5 lakh MSMEs with 3.5 billion data points.

“Lendingkart has reached and extended credit to over 11,000 PINs in over 4,000 cities and towns which is the highest in India. Our success with MSME lending in India aligns well with Amazon’s efforts to enable digital access for small and medium-sized businesses,” said Manish Bhatia, President of Lendingkart in a statement.

The company had hit the $1 billion mark in loan disbursement to 1.3 lakh MSMEs in October last year since receiving its Non-Banking Financial Company (NBFC) license in 2015. Lendingkart provides unsecured short-term working capital loans with little or no credit history available from the borrowers. The loan size ranges from Rs 50,000 to Rs 2 crores with a repayment period of one to 36 months.

FinancialExpress.com presents its flagship event The ScaleUp Summit exclusively for MSME owners to learn from each other and grow their business. Join us by registering here.

“The mission of the Amazon.in Seller Loan Program is to enable seamless access to credit for our sellers with transparent policies and reduced costs. This program enables market vendors across India to avail affordable credit (term loans, working capital loans) seamlessly to meet their working capital needs,” said Vikas Bansal, Director of Amazon Pay India.

In December last year, Amazon announced it had passed the 10,000 sellers mark in India from 100 sellers in 2013 when the company launched operations in the country. It is important to note that over 90% of sellers on Amazon.in are small and medium businesses and over half of these sellers in the marketplace are from Tier 2 and Tier 3 cities.

Lendingkart currently competes with Indifi, Aye Finance, Flexiloans, Capital Float, NeoGrowth Credit, U GRO Capital, Kinara Capital, etc., in MSME lending. India’s digital lending market is expected to grow from $75 billion in 2018 to $270 billion in 2022 and $350 billion in 2023, according to Statista.

Previous

School dropout rate continues to fall | Local News

Next

Lendingkart partners with Amazon India to offer working capital loans to sellers

Check Also