A global leader in digital payments PayPal entered into a partnership with FlexiLoans.com, a leading digital lending platform to provide freelancers, women entrepreneurs, sole proprietors and MSMEs with collateral-free business loans.
Through this partnership, PayPal said it further reiterates its commitment to democratise access to financial services by bringing the global best practices and credit solution capabilities to Indian merchants who sell cross border using PayPal.
The impact of the Covid-19 pandemic has been widespread, bringing economic strain to small businesses, freelancers and entrepreneurs who are facing myriad challenges to recover and sustain their businesses.
“The partnership aligns with PayPal’s mission to provide innovative credit solutions and will enable borrowers to access term loans from Rs 50,000 up to Rs one crore through a fast, hassle-free process that requires minimum documentation to merchants across 1,500-plus cities and towns in India.
The interest rates will start at one per cent per month and tenure up to 36 months, depending on the credit rating of borrowers. The loans are currently available to 10,000 PayPal merchants.
Anupam Pahuja, Vice President for India, Southeast Asia, Middle East and Africa at PayPal, said accessing capital through traditional channels has always been a challenge for most small businesses.
“Our partnership with FlexiLoans.com and combined expertise will enable us to reduce the existing gap in accessing credit, while accelerating growth for cross border selling and fast-tracking the Vocal for Local and Digital India vision.”