Amazon ties up with Bank of Baroda to offer micro loans to sellers

 

Online marketplace Amazon India is ensuring that sellers on its platform have adequate working capital. The Indian arm of the US e-commerce giant plans to provide unsecured micro-loans, as low as Rs. 1 lakh, at interest rates as low as 10.45-11 per cent. The company has tied up with Bank of Baroda for the loans, which can go up to Rs. 25 lakh. The loans will be offered on invite-only basis to the marketplace sellers.

For Amazon India, this is a kind of extension of its existing Seller Lending programme, which was launched last year, wherein it has partnerships with YES Bank and Capital First for loan amounts of Rs. 5 lakh-2 crore. With the Bank of Baroda tie-up, the company wants to cater to every strata of sellers. The company wants to help sellers remove all the barriers in this regard and create an ecosystem where they can focus on growing and expanding their business instead of having to worry about capital.