Amazon Ties Up with BoB for SME Loans
Mumbai: Amazon India is preparing for the festive season on all fronts and its lending programme is no exception. The ecommerce giant has partnered with Bank of Baroda for its Micro-Lending Facilitation Programme which will offer loans between ₹ 1 lakh and ₹ 25 lakh to small and medium businesses on the platform.
Under this alliance, working capital will be offered to over 2,25,000 sellers on the platform at interest rates of between 10.45%-11.5% for a span of 3 to 5 days. This micro lending initiative is in addition to Amazon’s 2-yearold seller loan programme which enables loans to sellers between ₹ 5 lakh and ₹ 2 crore and comes just a week ahead of its festive sale season starting September 20.
On its part, Bank of Baroda expects the programme to achieve a 20% penetration rate amongst sellers on the platform over the next one year. “This first year is the testing phase for us. If it takes off as planned, loans to ecommerce could see a potential of adding ₹ 800-1,000 crore to our loan book,” said PS Jayakumar, MD, Bank of Baroda.