E-commerce website Snapdeal is gearing up for the huge sale in this festive season from October to December 2016. Earlier last week, the company has launched Snapdeal Gold to hold its strength in the market. Now the online seller has come up with a new plan to increase its sales in the upcoming festive season this year. The company announced Rs.1000 crores worth collateral free loans to its sellers. Hopes this will equip enough money to the sellers to stock up sales for Diwali.
Ongoing program- Capital Assist would be disbursing the Snapdeal loans, which Freecharge is managing now and is available to all merchants and sellers on Shopo, Snapdeal, and FreeCharge. Capital Assist is looking at expanding their business by providing some capital sellers on its platform to meet their working needs.
“The festive season provides an opportunity to our sellers to grow their businesses many times over, with the sharp increase in demand. Through Capital Assist, we have made the funding process frictionless and expected more than Rs 1,000 crore disbursal to Snapdeal sellers ahead of this Diwali season,” said, Vishal Chadha, senior vice president (market development), Snapdeal.
This will ensure hassle-free collateral free loans to sellers and quick access to capital when needed. Snapdeal took this impressive initiative, and it is yet to be known about the other e-commerce websites following this gameplay. However, this process isn’t a cake walk as offering collateral free loans has its own issues and risks. Snapdeal has shortened the needed documentation and provide quick capital for the needy.
The company has partnered with 27 banks & NBFCs (Non-Banking Finance Companies) and banks to offer credit rating to its sellers. An instant decision on loan applications and fast disbursal to sellers can be made through this process. These NBFCs and Banks include HDFC Bank, Axis Bank, Tata Capital, Aditya Birla Finance, State Bank of India, ICICI Bank, Yes Bank, Reliance Capital, Hero Fincorp, L&T Finance, Capital Float and Lending Kart and other to facilitate Snapdeal loans.
Snapdeal has disbursed loans worth Rs.450 to over 2,200 small and medium-sized enterprises till now. An investment of Rs.200 crore has kept aside for marketing expenses for this upcoming festive season.