E-commerce major Flipkart, after facilitating loans worth Rs 125 crore for sellers on its platform in last one year, is looking to help merchants avail credit facility of over Rs 75 crore in the next few months.
The Bengaluru-based firm, which has partnered eight financial institutions including Axis Bank, Bajaj Finserv, and Lendingkart to offer collateral-free loans to sellers on its platform, has already disbursed Rs 125 crore worth of loans in the last one year.
Under the ‘Flipkart Growth Capital’ programme, launched in July last year, Flipkart sellers can avail loans with interest rates starting at 11.40 per cent, Flipkart said in a statement.
The programme had received over 3,000 applications in the initial months of the launch and over 800 loans have been disbursed, it added.
Mobile, electronics, fashion and fashion accessories are few categories that witnessed highest adoption for the programme, it said.
“Unavailability of finance is one of the major barriers for the growth of small businesses in both online and offline space. The programme addresses that issue and facilitates our sellers by helping them connect with trusted lenders in the industry,” Flipkart Head Marketplace Anil Goteti said.
Considering the increasing demand for the initiative, Flipkart estimates the number to hit the Rs 200 crore-mark by the end of this festive season.
“We are also planning to launch promotional offers with our lenders for the festive season in the following two months. This will enable our sellers to grow their business and provide quality products to millions of customers shopping on the platform,” he said.
The applications for loans were received from across the country including Delhi-NCR, Mumbai, Bangalore, Jaipur, Surat, Meerut, Tirupur, Erode and Salem.