Ecommerce major's lending platform for sellers lets them access loans from banks and NBFCs, including Aditya Birla Finance, Bank of Baroda, Capital First, Capital Float, Flexiloans, and Yes Bank.
Amazon India has launched its Seller Lending Network (SLN), which will allow sellers on its platform to seek loans from various third-party lenders.
The e-commerce major has partnered with banks and NBFCs like Aditya Birla Finance, Bank of Baroda, Capital First, Capital Float, Flexiloans, and Yes Bank for the lending programme. The Indian unit of the US-based e-tailer previously had a Seller Lending Programme that was launched in 2016.
A statement from the company said, “Building on the core value proposition of Amazon.in, the new Seller Lending Network will provide 1 - Wider Selection: Sellers can now choose loan offers tailored for their business needs from multiple lenders and loan types (term loans or overdraft loans), 2 - Better Value: Sellers stand to save about 150 – 250 bps on interest rates due to competitive rates offered by the lenders, and 3 - Greater Convenience: Sellers can now avail loans via an online application process with minimal documentation and a very quick loan approval process of 2-3 days for new loans, and intra-day approval for existing loan renewals.”
Amazon India boasts of having about 3.4 lakh sellers on its platform. Speaking to reporters in Bengaluru, Amazon India GM and Director, Seller Services, Gopal Pillai said, “The scheme that was started in 2016 has facilitated loans to thousands and thousands of sellers. Loan approval, which took about a week earlier, will now take just 2-3 days for new loans, and a day for existing loan renewals.”
SLN also has Lender Central, a portal to facilitate exchange of information between lenders and Amazon. Lender Central will facilitate information about seller performance data, loan application status, and loan portfolio details. In addition, lenders can use Lender Central to track the performance of a seller on Amazon in real time, thereby allowing lenders to better assess the sellers and make loan-decisioning models more comprehensive. Lenders also benefit from Amazon’s machine learning models that provide early warning signals and help them maintain a high quality loan book, the company said.