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Amazon India announced the launch of its Seller Lending Network, further scaling its Seller Lending programme launched in 2016, to offer sellers on Amazon.in loan options from multiple third party lenders. The Seller Lending Network is an India-first innovation, catering solely to the needs of Indian sellers.
The network seeks to provide Amazon’s 3,40,000 sellers a wider choice of loan offers from multiple lenders; better value on interest rates whereby sellers stand to save 1.5-2.5 per cent; and greater convenience with quick loan approval in 2-3 days for new loans and intra-day approval for existing loan renewals.
A seller can view multiple loan offers, apply for loans and opt for automatic loan repayments by linking their Amazon sale proceeds to their loan account — all on Amazon’s Seller Central Portal.
Lender partners
Currently, Aditya Birla Finance, Bank of Baroda, Capital First, Capital Float, Flexiloans and Yes Bank are Amazon’s lending partners. Collateral-free term loans or overdraft loans ranging from ₹2 lakh-₹5 crore are being disbursed to sellers with a business history of 4-6 months on Amazon.in.
“The Seller Lending Network further simplifies the ease of access to working capital for sellers through our banking partners and NBFCs, allowing sellers to focus on their core business. At the same time, we are also focused on giving an enhanced experience to our lending partners, through seamless information sharing on seller performance and easy repayment solutions” said Gopal Pillai, GM & Director Seller Services, Amazon India.
Portal for lenders
The e-tailer also announced the launch of Lender Central, a portal for Lenders similar to its Seller Central portal for Sellers, which facilitates exchange of information between lenders and Amazon.
Pillai claims that loan disbursements through the lending programme has grown 4.5 times since 2016, and for every rupee that is disbursed, an equivalent improvement in business is observed by the sellers.
Amazon.in has been able to grow its seller base to 3.4 lakh sellers, inspite of the GST roll-out, which was a huge area of concern for sellers, with proactive measures such as ‘A-Z GST guide’ to help sellers transition to the GST regime.
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