Joining the e-commerce boom, India’s largest bank, State Bank of India (SBI), has come out with a working capital loan offering — e-Smart SME — for sellers on e-commerce platforms.
“The sellers can apply for loan online and get immediate sanction — thereby enabling “loans at the click of a button.
This product moves away from traditional lending based on financial statements like balance sheet and income tax returns; and instead uses proprietary platform data and surrogate information from public domain to assess the seller’s credit worthiness for loan sanctioning,” State Bank of India chairman Arundhati Bhattacharya said.
The product is being launched in partnership with e-commerce platform Snapdeal.
“The e-commerce growth has also opened up a wide new world of opportunities for the banking industry,” the SBI chairman said after launching the product.