Facebook is one of the most popular social media platforms, especially in India. The country frequently uses the site to either connect with their loved ones who are oceans apart or to promote their businesses. In recent times, many Indians have started to use the platform for marketing their offerings, and Facebook has noticed this. Considering how many people are running ads on the site, the tech giant decided to help people by launching a new program called “Small Business Loans Initiative.”
Facebook Coming to the Aid of Indian Entrepreneurs
Folks at Facebook introduced Small Business Loans Initiative in partnership with Indifi, a famous online lending platform. With the help of this program, the company will be able to aid the SMBs that advertise on the platform to get access to loans via independent lending partners. This is pretty big news for the entire country. It has encouraged youngsters to pursue their entrepreneurial dreams. So, while you enjoy services like Super internet deals, it is the best time to step into the business world.
India: The First Country to Benefit from the Program
India is developing itself fast. The country is producing many successful businessmen. And with Facebook’s new program with Indifi, you can expect the number to increase more rapidly. India is the 1st country where Facebook launched its Small Business Loans Initiative, making people excited across the nation. This program is open for all businesses that are registered across approximately 200 cities and towns of India, eliminating the excuses or hurdles when it comes to starting your own venture.
This is the first time Facebook is working together with its lending partner Indifi. This program is created with the potential to bring even more partners on board. As small businesses and startups often have to face different challenges because of budget constraints, this initiative is introduced so that entrepreneurs can apply for loans easily. Also, the tech company hopes that this will help minimize the credit gap within the country’s MSME sector.
Resolving the Problems
As stated earlier, small business owners in India struggle with gaining access to resources in order to start their venture successfully. Cash flow is one of their major problems, which they can’t seem to escape from. Also, those businesses which have just started cannot get access to timely credit. And the reason for that is that the entrepreneurs don’t have a long credit history.
However, this issue is going to be resolved thanks to Facebook and Indifi’s program. Those businesses that advertise with the platform will be allowed to gain access to the loans at an interest rate ranging from 17% to 20% per annum. The best part about this initiative is that people can apply to this freely without collateral. What’s more? They won’t have to get stuck in long queues or anything. Instead, all they will need to do is apply for the loan by filling an online application.
Facebook Wants India to Thrive
Facebook is showing a strong interest in India and wants the nation to thrive. Ajit Mohan, the managing director and vice president of Facebook India, said that the company wants nothing more than to build economic opportunities for the country’s small businesses. At the same time, he stated that access to capital is important as it can allow SMBs to operate more efficiently. And hence, they can experience big growth. Mohan also believes that with Small Business Loans Initiative, the country’s young entrepreneurs will be able to bring their unique ideas to life easily.
The details about this program were revealed at the event, “Enabling MSME Growth through Financial Inclusion.” This virtual event was hosted by none other than Facebook India in association with the Federation of Indian Chambers of Commerce & Industry. During the event, the Chief Executive Officer of Niti Aayog, Amitabh Kant, expressed his gratefulness to Facebook India for launching such a great program.
It is always heartwarming to see Facebook making efforts like this to help others. With the creation of the Small Business Loans Initiative program, India’s SMEs can certainly have a brighter future. Also, the fact that there will be no processing fee involved whenever upcoming entrepreneurs apply for this program makes it more special. Moreover, the loan will be disbursed in five working days. So, what do you think about this new initiative by Facebook?