Home / Knowledge / News / Apparel/Garments / SBI ties up with Snapdeal for loans to e-commerce sellers
SBI ties up with Snapdeal for loans to e-commerce sellers
16
Jan '16
In what could be a major boost to sellers on e-commerce platforms, the State Bank of India has announced the launch of SBI e-Smart SME to offer easy working capital to online merchants. For starters, SBI has tied up with e-commerce major Snapdeal to offer instant loans to its sellers.

"The e-commerce growth has created a new ecosystem enabling more than 5 lakh sellers to sell product on digital platform. It has also opened up opportunities for the banking industry," SBI chairman Arundhati Bhattacharya told media persons in Mumbai.

The bank is also planning a similar tie-up with Flipkart, Paytm and Amazon, she said.

SBI e-Smart SME will use data analytics gathered by Snapdeal to assess the sellers credit worthiness, instead of traditional lending based on financial statements like balance sheet and income tax returns.

"The biggest challenge for SMEs is to raise financing through formal banking is often they don't have collateral or a long history of financial statements to give confidence to lender.

"Through this real time analytics tool we have created with SBI, we can assign a credit score to all sellers on our platforms," said Snapdeal co-founder and CEO Kunal Bahl.

In one year, through its Capital Assist Programme, Snapdeal had lent over Rs 250 crore to 1,000 sellers. In this year, it is targeting Rs 1,000 crore loans to SMEs, he added.

In May last year, SBI had partnered with Snapdeal to finance seller loans through the latter's Capital Assist platform. This initiative to offer instant loans will take it further ahead.

According to the SBI e-Smart SME scheme, sellers initially will be able to avail loans up to Rs 25 lakh. Loans up to Rs 10 lakh will be collateral free with a competitive interest rate. Women entrepreneurs will have a special concession of 25 basis points.

Loans below Rs 10 lakh will be covered under the Pradhan Mantri Mudra Yojana Scheme. (SH)

Fibre2Fashion News Desk - India

Must ReadView All

Courtesy: Creora

Textiles | On 28th Mar 2017

Hyosung holds Creora workshops in China, HK & Taiwan

South Korean specialty fibre producer Hyosung held a series of...

Apparel/Garments | On 28th Mar 2017

US withdrawal from TPP to not impact Vietnam garment exports

A high ranking official of the Vietnam Textile and Apparel...

Apparel/Garments | On 27th Mar 2017

NYCEDC announces $51mn package for NYC garment industry

New York City Economic Development Corporation (NYCEDC), in...

Interviews View All

Angelina Francesca Cheang
MY ANJE

'Consumers in the age-group 21 to 38 are driving the activewear trend'

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search