Facebook launches 'Small Business Loan Initiative' in 200 cities in India

 Through Facebook India's small business loan initiative, small businesses in India that advertise with Facebook will be able to obtain loans at a predetermined interest rate of 17-20% per annum.


Facebook India has announced a new program called "Small Business Loans Initiative" (Small Business Loans Initiative) on August 20, 2021. The program has been launched in partnership with online lending platform Indifi, to help small and medium businesses (SMBs) who advertise on Facebook to get instant access to credit through independent lending partners. We do.

India has become the first country where Facebook has started this program. This initiative has been opened for registered businesses in 200 cities and towns of India.

Objective

The objective behind launching this 'Small Business Loan Initiative' by Facebook India is to make business loans more accessible to small businesses and reduce the credit gap within the MSME sector of India.

Facebook's Small Business Lending Initiative: Key Details

• Through Facebook's partnership with Indifi, small businesses in India who advertise with Facebook will be able to access loans at a predetermined interest rate of 17-20% per annum.

• This program by the tech giant will enable small businesses to apply for loans without collateral through a quick online application.

• Many such small businesses, who face challenges in getting loans of lesser ticket size, will be able to get loans between Rs.05 lakhs to Rs.50 lakhs.

• Such small businesses, which are wholly or partially owned by women, will be able to avail loans from Indifi at the applicable loan interest rate, at a special rate of 0.2% per annum.

Facebook's other initiatives to support small businesses

Ajit Mohan, Vice President and Managing Director, Facebook India has said that the company will not profit from this partnership and will help Indifi connect with small businesses.

As a part of this initiative, businesses will have no obligation to advertise on Facebook or its companies.

Facebook has taken a number of steps over the past year to support the economic recovery of small businesses. Some of these include expanding the company's industry-leading skills initiative to support small businesses' journey from offline to online, along with offering grants to small businesses.