SBI in deal with Snapdeal for seller financing
22 May 2015
State Bank of India (SBI) has entered into a preferred partnership agreement with online marketing firm Snapdeal for financing their sellers under `Snapdeal- Capital Assist Programme'.
This is the first and only such agreement for seller financing entered into by SBI and is in keeping in the view of specific requirements of sellers in e-commerce industry, SBI said in a release.
''With this, the existing customer base of approx 9 lakh MSMEs of SBI will record further growth and the robust technology platform of SBI will comfortably manage the same,'' SBI said.
''E-commerce is currently the future of business in India and State Bank of India has been always committed to adapting to such new business trends,'' it added.
SBI said it is currently the largest commercial bank in India and the leader in financing MSMEs, having MSME loan book of approx Rs1,67,900 crore at the end of the third quarter of FY 14-15.
This is one more strategic step towards structured financing to MSMEs, it added.
The deal will benefit the sellers as Snapdeal- Capital Assist Programme will be offering digital platform with SBI for instant loan approval and customised product for e-commerce industry. Bank will provide hassle free loans to the traders and manufacturers, under the Snapdeal- Capital Assist platform to scale up their business levels.
Pricing under the scheme is very competitive. Further, there will be concession of 0.25 per cent in interest rate for women entrepreneurs.
For manufacturing units, no collateral security will be required up to the limit of Rs1 crore as it will be covered under CGTMSE scheme.
CGTMSE fee will be absorbed by the bank. For traders, there is no requirement of collateral security up to the limit of Rs25 lakh.
With 11 million+ products across 500+ diverse categories from thousands of regional, national, and international brands and retailers and millions of users and 10,000 sellers, Snapdeal has now become a preferred partner for SBI and the bank aims to enter into many such strategic agreements with Snapdeal in the next financial year.