COVID-19 ravaged businesses around the world. Small businesses, in particular, are still reeling from its effects even as lockdowns ease. In a bid to support small businesses in its ecosystem, Facebook has recently launched a ‘Small Business Loans Initiative’ program.
This Facebook small business loan scheme was launched in August 2021, offering businesses across 200 Indian cities loans of up to Rs. 50 lakhs. In this article, we take a look what the scheme means for businesses.
Small Business Loans Initiative – All about the scheme
The new loans for small business Facebookinitiative,launched in collaboration with Indifi,aims to empower small and medium-sized businesses (SMB) that advertise on Facebook by providing them access to instant funds from independent lenders. Interestingly, India is the first country where the tech giant is rolling out this scheme.
According to Facebook’s “Future of Business” survey, almost a third of SMBs on the platform admitted that cash flow was expected to be a major challenge in 2020. Through this initiative, Facebook is aims to make business financing more accessible for small businesses.
Additional Read – How to Get a Small Business Loan from the Government
How does the initiative benefit small business owners?
- Get loans of between Rs. 2 lakhs to Rs. 50 lakhs without pledging collateral
- Access a loan marketplace with Indifi, and choose between different lenders to get the best rate for your loan
- Loan application with different lenders through a single application form
- Quick loan processing and disbursal times within five working days of submitting the necessary documentation
- Business loan interest rates set between 17-20%, irrespective of the loan amount taken
- Women-owned small businesses get a special 0.2% reduction in interest rate if the application was made through Indifi
- Timely updates on loan status
- Convenient repayment period of 12-36 months
- No processing fee involved
Who is eligible for this facility?
- Small and medium-sized businesses from the cities covered under the initiative.
- Businesses that have been advertising on Facebook and its extended app family for at least 180 days.
Note that the full eligibility criteria and the lending decisions differ according to individual lenders.
Essential documentation required
- KYC of business and all its promoters
- The transaction statements of your business account for the past 6 months
- The complete ITR of the business of the past year if the loan amount is greater than Rs. 10 lakhs
Additional Read – Are Unsecured Business Loans Safe for Small Businesses?
It is clear that Facebook’s new initiative is a step towards supporting small businesses in their growth journey.
But what if you are a small business in need of a larger loan? Well, you can always rely on trusted lenders like Tata Capital. We offer you loans with similar perks such as extended loan tenures, simple business loan eligibility and affordable business loan interest rates. What’s more, you can also avail of collateral-free loans with us. Just decide your ideal loan tenure after calculating your repayments using our business loan EMI calculator, and send your application today!