Business
The bank is also planning a similar tie-up with Flipkart, Paytm and Amazon going forward, said the chairman of State Bank of India (SBI).
Updated : Mar 21, 2018, 02:57 AM IST
 "Arundhati Bhattacharya")
The country's largest lender, the State Bank of India (SBI), on Saturday, announced the launch of SBI e-Smart SME to offer easy working capital to online e-commerce players. The bank has tied up with e-commerce major Snapdeal to offer instant loans to its sellers.
In a briefing to the media, SBI chairman Arundhati Bhattacharya said, "The e-commerce growth has created a new ecosystem enabling more than five lakh sellers to sell product on a digital platform. It has also opened up opportunities for the banking industry."
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Our #SmartSME e-Commerce Loans offer collateral-free quick online loans* exclusively for e-Commerce sellers. pic.twitter.com/hIBcZBdhda
— State Bank of India (@TheOfficialSBI) January 15, 2016
The bank is also planning a similar tie-up with Flipkart, Paytm and Amazon going forward, Bhattacharya said.
ALSO READ: It's difficult to do banking business in US: Arundhati Bhattacharya
"The biggest challenge for Small and Medium-sized Enterprises (SMEs) to raise financing through formal banking is often they don't have collateral or a long history of financial statements to give confidence to a lender," added Bhattacharya.
However, Bhattacharya also said that women entrepreneurs will have a special concession of 25 basis points. Loans below Rs 10 lakh will be covered under the Pradhan Mantri Mudra Yojana Scheme. The bank had hired management consulting firm BCG to facilitate the development of this credit model.
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