Festivities Starts for Snapdeal Sellers - 1k Crore Offered as Collateral-Free Loans

BENGALURU: Snapdeal announced a Collateral-free loan for its sellers worth Rs 1,000 crore, in an effort to enable sellers to stock up adequately. The online marketplace firm will be disbursing all this capital through its ongoing programme - Capital Assist. The programme is at the moment managed by FreeCharge and can be accessed by all the sellers and merchants—reports The Times Of India.

"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 expect more than Rs 1,000 crore disbursal to Snapdeal sellers ahead of this Diwali season," said Vishal Chadha, Senior Vice President, Market Development, Snapdeal.

Sellers have been previously helped by the Snapdeal's Capital Assist Initiative in offering a direct access through the platform to get financial opportunities at a wider level, and that too without any collaterals or lengthy documentation. A scoring process has been evolved by the marketplace in collaboration with the partner banks and NBFCs. This process provides credit rating to its sellers enabling them to get an instant decision on loan applications and quick disbursal.

There are 27 banks and non-banking finance companies currently as partners in the Capital Assist Initiative which includes State Bank of India, HDFC Bank, ICICI Bank, Axis Bank, Yes Bank, Tata Capital, Reliance Capital, L&T Finance, Hero Fincorp, Aditya Birla Finance, Lending Kart and Capital Float, among others. The main role of these financial institutes is to facilitate the loans for the organizations. Loans worth Rs 450 crore have been distributed till now to more than 2,200 small and medium-sized enterprises as informed by Snapdeal.

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