Facebook's New Program to Help Small Businesses Gain Access to Loans in India

In partnership with the online lending platform Indifi, Facebook has launched a new program 'Small Business Loans Initiative,' to help SMBs across India gain quick access to business loans. This program will help businesses across the country avail credit through independent lending partners.

The Small Business Loans Initiative's timing is laudable since India's small and medium businesses have suffered great losses due to the COVID-19 pandemic. Facebook has also announced that it will receive no revenue or gain any benefits through this program.  

“FICCI lauds Facebook efforts of empowering the MSME sector with the right opportunities, skills, and solutions. FICCI has always advocated for stronger private sector participation for the growth of India’s MSMEs and welcomes the launch of Facebook's Small Business Loans Initiative to make access to credit more easily available to the industry," commented Uday Shankar, president, FICCI.

If a business applies for a loan through the Small Business Loans Initiative, it can expect INR 500,000 to INR 5,000,000 in loans. If approved by Indifi, loans can be availed in 3 working days of completing all documentation. Applications are being accepted with no collateral through a quick online application.

The interest range on the loans through this program will be between 17-20 percent p.a. A woman-owned business can receive 0.2 percent reduction on the applied interest rate. Business owners who apply through this program can get the application confirmation within one working day of applying.

Facebook has rolled out this program for registered businesses across 200 towns and cities of India.