State of Bank of India (SBI) on Thursday entered into a seller financing scheme with e-com major Snapdeal.
Under the scheme, SBI will provide loans to small and medium enterprises at easier interest rates. Data regarding the sellers will be provided by Snapdeal.
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"Rates of interest will be determined by the credit worthiness of the seller," Arundhati Bhattacharya, Chairman, SBI, said after signing the MoU with Snapdeal.
The country's biggest lender (SBI) had an MSME loan book of approximately Rs 170,000 crore as on December 31, 2014.
The seller financing scheme will help MSMEs — traders, sellers and manufacturers — scale up their operations by catering to their working capital requirements, Bhattacharya said.
According to Kunal Bahl, CEO, Snapdeal, there are at least 150,000 sellers associated with Snapdeal. E-com major Snapdeal operates in a marketplace model.