By Manish Singh
Facebook is launching a new program in India to help small and medium-sized businesses secure loans in the South Asian market as the company makes further push to expand its presence among merchants.
The social conglomerate said its new program, called Small Business Loans Initiative, addresses some of the biggest pain points small businesses face when securing loans.
The company, which last year announced a $4.3 million grant for small businesses in India, said the program will allow its lending partners to grant small ticket loans — between 500,000 Indian rupees ($6,720) to 50,00,000 ($67,200) — at a predefined interest rate of 17%-20% per annum and won’t require the businesses to provide any collateral at the time of applying.
At the time of launch, company’s pilot lending partner is CDC Group-backed Gurgaon-headquartered Indifi, which will disburse the loan amount within five working days of the borrower completing all documentation formalities after acceptance of the offer by Indifi.
Facebook said it’s working in “arm’s length” with its lending partners, but those partners will be handling all the risks of loan payments and determining the eligibility criteria.
Facebook, on its part, is making businesses aware of the lending program and has worked to …read more
Source: Tech Crunch