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Facebook embarks on credit to exploit Indian SMEs – The New Indian Express


Express news service

BENGALURU: Facebook launched on Friday its loan initiative for nearly 30 million small businesses present on Facebook, Instagram and Whatsapp, offering them low-cost loans in the amount of Rs 5-50 lakhs in collaboration with Indifi, a lending platform.

Indifi is a Series C funded debt financing platform, backed by Omidyar Networks, Accel Partners and Elevar Equity, which disburses over 20,000 loans and has 20 lenders. The social media giant has been eyeing the medium and small business (MSME) market in India for quite some time. India is the first market, where the company has launched a small business loan program.

The loans will have a preset interest rate of 7-20% per annum and will be disbursed within five days.
Facebook (India) Managing Director Ajit Mohan said the internet company has no plans to monetize through its new initiative and the procedures / eligibility for loan disbursement will be decided by partner lenders. In the coming days, Facebook plans to partner with non-bank financial companies (NBFCs) and other lenders to help scale the initiative. Facebook has rolled out the program in 100 cities and will soon expand the initiative to 100 more cities across India.

Mohan said TNIE this effort will be to help businesses grow which generally find it difficult to access credit through conventional lending channels. “Facebook’s role will be to assess activity in terms of activity, behavior on various platforms that include advertising as well as online sales,” he added.

“The integration of businesses through the Facebook, Whatsapp and Instagram platforms, the data sharing announcements on business groups recently signal a change in the company’s monetization strategy, beyond social media,” he said. said a great industry insider. For the cash-crippled SME sector, which has already suffered the full brunt of Covid and slowed consumption, digital sales offer a new avenue accelerated by the change in purchasing behavior during the pandemic.


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