Facebook India on Friday launched 'Small Business Loans Initiative' to help small and medium businesses (SMBs) in India. As a result, loans ranging from Rs 5 lakh to Rs 50 lakh will be given to these industries. Importantly, the loan will be available in 200 cities across the country.For this, Facebook has signed an agreement with Indifi. This company lends to MSMEs. The loan initiative has been launched by Ajit Mohan, VP and MD, Facebook India.
The programme will also enable small businesses to apply for loans without collateral through a quick online application. The loan will be approved within 5 days.The interest rate will be 17 to 20 percent. Women traders will be given 0.2 per cent discount on interest. He said that Facebook has made it easy for businesses that are struggling to get a loan in the shortest possible time.
Mohan said that the goal of this campaign is to make business loans easy and simple. India is the first country where Facebook has introduced this scheme. Uday Shankar, president of Ficci, said that Facebook's campaign deserves praise.
This will help move the MSME sector forward. This loan is useful for companies that cannot afford any mortgage. If these companies get working capital, they can grow.Banks and other companies do not lend to them as they do not get any guarantee. This problem will go away.
"MSMEs are the backbone of the country's development," said Amitabh Kant, CEO of the Policy Commission. Facebook's campaign is a big step in helping this development.