In a statment, Archana Vohra, Director, Small and Medium Business, Facebook India said, “Access to timely credit is critical, and we hope the Small Business Loans Initiative can help unlock the right economic opportunities for our small business advertisers.”
Commenting on the partnership, Aditya Harkauli, Chief Business Officer, Indifi said, “We are delighted to be a part of Facebook’s Small Business Loans initiative. This relationship provides us the opportunity to expand our reach to millions of businesses that advertise on Facebook.”
The program combines multiple benefits for Facebook’s MSME clients. Under this program, MSME borrowers, across 200 cities, will now be able to apply for unsecured credit of up to Rs 50 lakh at extremely attractive rates, with no processing charges.
Facebook clients will get a one stop access to a large and growing marketplace of Banks & NBFCs, to choose from. On Indifi’s platform, a borrower can begin & complete the journey, from application to disbursal, in a digital mode and select the best deal in a matter of a few hours.
The loans come at an interest rate of 17-20 percent without any collateral. For women entrepreneurs, the company is offering a further 0.2 percent reduction in the rate of interest.
India is the first country to witness such an initiative by Facebook, which aims to address the credit accessibility issue faced by the SME sector. While the program has been co-designed with Facebook, Indifi will be the one to take decisions on loan disbursals and recovery.