Loan request to Facebook
Facebook is offering loans to Indian local businesses
Finance
Facebook is offering loans to Indian local businesses
Facebook is offering collateral free business loans to micro, small and medium enterprises (MSME) in India. Facebook intends to reduce the credit gap for MSME sector in India. As per the Global State of Small Business Report 40% of formal MSMEs do not have access to financing needs.
Facebook will be offering businesses loans between INR 5 lakhs and INR 50 lakhs in 200 cities. Facebook has partnered with Indifi for the initiative. Businesses will get the loan within 5 days of applying for it, at an interest rate between 17% to 20%.
As per Business Standard: Facebook’s Ajit Mohan said that Facebook will not be monetising this partnership, and will help connect small businesses with Indifi. The businesses will also have no obligation to advertise on Facebook or its companies as part of this initiative.
Such initiatives can help solve three problems for MSME. One, pandemic has hit the cash flow. It can help recover the cash flow. Two, off-line to online journeys of small businesses. Three, allowing MSME sector to access the international market.