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

Textiles minister Smriti Irani at a press conference with minister of state for textiles, Ajay Tamta, the principal director general (M&C), PIB, AP Frank Noronha and other dignitaries. Courtesy: PIB

Apparel/Garments | On 23rd May 2017

Special package for knitwear coming soon: Irani

Union textiles minister Smriti Irani said that the government of...

Apparel/Garments | On 23rd May 2017

Apparel, footwear use may rise by 63% in 2030: Report

The apparel and footwear consumption is projected to rise by 63 per...

Apparel/Garments | On 23rd May 2017

Gap Inc earns $3.4 bn in net sales in Q1 FY17

Gap Inc's net sales for the first quarter of fiscal year 2017 were...

Interviews View All

Shiladitya K Joshi
Truetzschler India Private Limited

India ITME provides a platform to interact with our stakeholders

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

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

news category


Related Categories:
May 2017

May 2017

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

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search