Amazon India, in order to attract more sellers during the festive season, has tied up with the Bank of Baroda to offer micro loans to its sellers.
- Bank of Baroda loans would be offered on invite-only basis to sellers, based on their performance.
- The loans would be extended in the range of Rs 1-25 lakh at annual interest rates between 10.45% and 11.5%
- The loans will be offered on invite-only basis to the marketplace sellers.
- Amazon India had partnered with Capital First Limited for the programme.
- Capital First provides secured and unsecured loans to sellers from Rs 5 lakh to Rs 2 crore at competitive interest rates.
- In India, unsecured loans of Rs 1-25 lakh have very low approval rates. Small-scale businesses get loans at high annual interest rates of 18-30 per cent, with a processing time of up to 30 days.
- The sellers on Amazon will receive pre-approved indicative offers from the bank for the loan amount they are eligible.
- They will be able to use their sale disbursements on the Amazon marketplace to directly repay the loan.
About Bank of Baroda
- The bank was founded by the Maharaja of Baroda, Maharaja Sayajirao Gaekwad III on 20 July 1908 in the Princely State of Baroda, in Gujarat.
- It was nationalised on 19 July 1969 and has been designated as a profit-making public sector undertaking (PSU).
- It is headquartered in Vadodara in Gujarat, India.
- It has a corporate office in Mumbai.
- It became the first National Supporter (Indian sponsor) of the FIFA U-17 World Cup India 2017, the first football World Cup to be hosted in India
- Ravi Venkatesan is the current Chairman
- P. S. Jayakumar is the Managing Director & CEO
- Bharat Dangar is the Director of the bank
