New Delhi, November 30: Private sector lender, RBL Bank has launched a short-term credit facility, called RBL Bank Udhaar to provide instant working capital to retail shopkeepers.
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The initiative will be extended to over 25,000 retailers spread across India’s 5,000 pin codes through B2B e-marketplace Wholesalebox, with loan disbursement of upto Rs 3 lakh to each retailer.
“With this partnership, we intend to empower the retailers to utilise their credit multiple times and repay the amount conveniently,” Harjeet Toor, head of retail, inclusion and rural business of RBL Bank said.
Udhaar, a short-term credit facility for retailer’s working capital requirements, is a digital lending product to facilitate instant remittance for retailers. The unsecured loan is offered without submitting any financial documents.
Banks and non-banking finance corporations are increasingly looking towards fintechs and e-commerce platforms for providing instant credit solutions to the MSME segment. One such solution is being provided by personal financial marketplace, Paisabazaar, which has tie-ups with TradeIndia, an online B2B marketplace.
Naveen Kukreja, CEO and MD of Paisabazaar.com says, “With continued technological innovation, these tie-ups will play a crucial role in reducing the gap between the financial institutions and MSMEs and help improve the overall credit penetration and financial inclusion in our economy.”