Ama­zon Ties Up with BoB for SME Loans

The Economic Times - - Companies: Pursuit Of Profit - Supraja.Srini­vasan @times­

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.

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