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Facebook New Loans Program For Small Business - Benefits, Features , Eligibility

Facebook has announced a new lending program for SMEs in India in collaboration with Indifi. This program was designed to help SMEs in India that are members of the Facebook family boost their productivity and growth.

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An overview of Facebook’s new loan program




 

Facebook has announced a new lending program for SMEs in India in collaboration with Indifi. This program was designed to help SMEs in India that are members of the Facebook family boost their productivity and growth. Indifi provides the program known as the ‘Small Business Loan Initiative.’ 

 

Shri Ajit Mohan, the CEO of Facebook India, stated that around 200 million businesses are already registered on social media platforms, which include Instagram and Whatsapp. These companies can now apply for loans ranging from 5 lakhs to 50 lakhs at an annual interest rate of 17%-19%. In addition, the social conglomerate stated that its new initiative, Small Business Loans Initiative, solves some of the most significant challenges that small businesses encounter when obtaining loans.

 

Furthermore, Facebook business loans have some intriguing advantages, which we’ll discuss in greater detail below.

 

Facebook small business loan initiative:

 

India-based Indifi is committed to lending funds to small and medium-sized enterprises across India. They are a digital platform that collects data on various MSMEs in the country and provides financial support to help such businesses develop, particularly following the impact of the lockdown on enterprises. 

 

MSMEs in India who advertise on Facebook are eligible for loans to help them build their businesses. Indifi has given loans to more than 25,000 SMEs across the country and has a presence in more than 200 towns. Indifi can offer more significant benefits to its customers and reach a larger audience through the Facebook network of apps by partnering with Facebook. Many firms suffering from financial limitations due to the statewide lockout have turned to Facebook Business Loan to help them maintain their market presence. They have taken this initiative to help our country’s SMEs, which find it difficult to obtain loans without collateral. 

 

This was made possible by collaborating with Indifi, one of India’s fastest-growing startups situated in Gurgaon. Indifi provides the expertise to collect data, learn about new businesses, and provide financial credit to assist them in succeeding.

 

Facebook receives no revenue as a consequence of this initiative. Instead, through Indifi, Facebook will offer a loan to small and medium-sized enterprises on its network. Also, keep in your consideration that Facebook does not work as a guarantor in this case; instead, it will back your business to become successful as well as provide backing in the application process.

 

Facebook India made an announcement on Friday regarding its new ‘Small Business Loans Initiative Programme’ to help small and medium-sized businesses in India. This program is being introduced in India for the very first time by the social media giant. It will back SMBs or small and medium-sized businesses that advertise on the social media platform by taking fast credit from independent lending partner apps. 

 

The program is available to firms registered in 200 towns and cities in India. The initiative’s goal is to make business loans more available to small entrepreneurs and to close the credit gap in India’s MSME (micro, small, and medium enterprises) sector, according to Facebook India Vice-President and MD Ajit Mohan at a virtual briefing.

 

Benefits of Facebook Small business loans program: 

 



 

  • Get loans ranging from Rs. 2 lakhs to Rs. Fifty lakhs without putting up any collateral. 

 

  • With Indifi, you may access a loan marketplace and choose between multiple lenders to acquire the best loan rate. 

 

  • Loan application with multiple lenders with a single application form 

 

  • Loan processing and disbursement within five business days of providing the required documentation 

 

  • The interest rate on any business loan is fixed at 17-20%, regardless of the loan amount. 

 

  • If the application is made through Indifi, women-owned small companies receive a special 0.2% interest rate discount. 

 

  • Loan status reports are provided on a regular basis. 

 

  • A repayment duration of 12-36 months is convenient. 

 

  • There is no processing cost.

 

No monetization of the program:

 

The firm is not monetizing this initiative. According to Facebook, the corporation believes that enormous growth in the small business environment in India is in their best interests because they are in it for the long haul. 

 

This program is not intended to generate revenue for Facebook. There is no income-sharing arrangement in place. They are not imposing any restrictions on how the money is spent. To be honest, Facebook is hoping that, as a result of this program, other companies will launch programs to increase market access to credit. That will be beneficial to all of us. There is no transactional agenda attached here.

 

The company, which is well aware that India comprises the largest user market, still invested $5.7 billion in the Indian technology giant, Jio Platforms, including other things apart from digitizing small businesses in the nation. 

 

MSMEs will be critical in boosting India’s economic growth and attaining the country’s goal of becoming more self-sufficient. As per Amitabh Kant, who is the chief executive officer of the think tank NITI Aayog, at a virtual conference Friday, digital transformation will be working like a pressure for the country’s development story in the future, and easy access to financing would be important to this transition. 

 

Mohan further stated that Indifi and other financial partners would make all loan decisions, including loan approval, payout, and recovery. He went on to say that Facebook is connecting the loan partner and the SME, as well as offering structure in terms of interest rates. According to Mohan, about 200 million businesses use Facebook apps each month across Facebook, Instagram, and WhatsApp, with a sizable portion based in India.

 

Features of the program:

 



 

Amount of Loan: As a part of the Facebook business loan for small businesses program, you could receive up to Rs 5 lac-50 lac depending on your business needs. Nowadays, most traditional business lenders do not offer much money to enterprises. However, the capital issue has been rectified as a result of this Facebook loan.

 

No collateral required: This loan application is completed online, and no collateral is necessary. Furthermore, the application process remains simple and quick. After you get the approval, the loan will be sanctioned within three days from the approval date.

 

Support for women entrepreneurs: Indifi also offers unique incentives to enterprises owned wholly or partially by women. The aim is to intrigue more women to build, expand and thrive in businesses or start-ups. To encourage women to become a part of this project, the interest rate of the program for women founders has been decreased by 0.2%.

 

Interest rates are pre-defined: This loan has an annual interest rate of 17%-20%, depending on the loan amount. Whether you accept a loan for 5 lacs or 50 lacs, the interest rate will be the same throughout the payback time.

 

Final Verdict:

 

Hence, if an SME has advertised its brand on Facebook for a long period of time, then it may become eligible for the Facebook business loans scheme. This allows you to raise large sums of money to expand your firm to its greatest potential. There is no unnecessary red tape, collateral requirement, or high processing costs. 




Faq's

This program has been named “Small Business Loan Initiative” by Facebook. Through this program, MSMEs across India that advertise through Facebook are provided with credit to grow their business. Indifi has disbursed loans to more than 25,000 SMEs nationwide and is active in 200+ cities across the country.

To inspire and bestow courage on women, Interest rates have been reduced to 0.2%. 

Facebook invested USD 5.7 Billion. 

Indifi is the lending platform backing Facebook.