SBI ties up with Snapdeal, PayPal to assist SMEs

Kolkata, May 21

Country’s largest bank SBI today signed pacts with e-commerce player Snapdeal and digital payments firm PayPal for providing cheaper loans and cross-border transaction facility to small and mid-sized businesses.

Under the ‘Snapdeal-Capital Assist’ programme, sellers or manufacturers on its platform will be able to access liquidity at attractive rates from SBI, with women entrepreneurs getting a further concession of 0.25%. Besides, no collateral will be required for loans up to Rs 1 crore.

“It is a partnership of the equals in which the bank will provide financial assistance to sellers on e-commerce platform,” said SBI chairperson Arundhati Bhattacharya. She said SME sellers were being constrained by liquidity problems and were not being able to ramp up their businesses.

“Even if a business is good, if liquidity is not there then it will not survive,” Bhattacharya said.

Snapdeal CEO Kunal Bahl said the deal will help small businesses as they find it difficult to provide adequate collaterals while seeking loan. — PTI