• Nigerian/African Tech
  • Start Up
  • Internet
    • App
    • Mobile
    • Software
  • Gadgets
  • Money
  • Video
Tech News, Magazine & Review WordPress Theme 2017
  • Home
  • Africa
  • Business
  • Video
  • Metaverse
  • AI
  • Gadgets
  • Earnings
  • Tips
Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
  • Home
  • Africa
  • Business
  • Video
  • Metaverse
  • AI
  • Gadgets
  • Earnings
  • Tips
Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
TechBooky
Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
Home Enterprise

Facebook Launches Program For Small Indian Businesses

Olagoke Ajibola by Olagoke Ajibola
August 21, 2021
Share on FacebookShare on Twitter

Facebook is launching a new program in India to help small and medium-sized businesses secure loans in the South Asian market. This is a move by the company to further expand its presence among merchants. The new program is called Small Business Loans Initiative. This initiative is focused on addressing some of the challenges small businesses face when securing loans.

Also On TechBooky

Microsoft In Major Shake-Off, Announces The Disengagement Of 10,000 Employees

Kenyan Fintech Startup, Kwara Raises $3 Million Seed Extension

Tunisia AI Startup, InstaDeep Acquired By Germany’s BioNTech For £582m

Agritech Startup, Releaf Completed Its Pre-Series A Funding With $3.3m

Ghana Based Logistics Startup Jetstream Secures $13m Pre-Series A

Facebook said the new Small Business Loan program will allow its lending partners to grant small-ticket loans — ranging from 500,000 Indian rupees ($6,720) to 50,000,000 ($67,200) — at a predefined interest rate of 17%-20% per annum. The new initiative by Facebook would not require small businesses to provide any form of collateral or access fee in other to partake in it.

Facebook mentioned it’s working at “arm’s length” with its lending partners who will be handling all the risks associated with loan payments and determining the eligibility criteria. Facebook says one of the criteria for businesses to be eligible is that such businesses must have advertised on the Facebook app for at least 180 days at the time of application. A loan is expected to be disbursed within five working days once documentation and formalities are completed, all after the acceptance of the offer. The company expects more partners to join the program in the long run. Facebook, on its part, is making efforts for businesses to gain awareness. The social media company has also worked to improve the underlying lending framework such as boundaries for interest rate, engagement responsiveness between the lending partner and businesses (there will be an on-call support system within one day of applying), and ticket size of the credit amount.

Facebook India Head Ajit Mohan in a phone interview said that small businesses in about 200 Indian cities can apply for the loan starting immediately. Businesses identified to be wholly or partially run by women will in addition be able to secure the loan at a special 0.2% reduction rate per annum. This move was agreed on as a way to drive gender participation. This is the first time Facebook is launching a program of this kind in any market.

Last year, According to a survey conducted by Facebook in collaboration with OECD and the World Bank, almost a third of operational small and medium-sized businesses on Facebook in 2020 said cash flow is one of their primary challenges. The company is not monetizing this program says, Mohan. He continues “We believe it is in our self-interest for there to be massive growth in the small business ecosystem in India because as a company we are playing this for the long term. We will disproportionately benefit because a lot of these small business activities will happen on our apps as they grow,” says Mohan. “We are not looking to make money from this program. We don’t have any revenue-sharing agreement. We are not putting any constraint on how this money is spent,” he said. “Frankly, we are also hoping that on the back of a program like this other companies will also create programs so that there is more access to credit in the market. That will be good for us all. There is no transactional objective here.”

This announcement is the latest in a series of efforts it has made to tap into South Asian nation’s small and medium-sized businesses. The firm, which identifies India as its largest market by users, last year invested $5.7 billion in Indian tech giant Jio Platforms to work on, among other things, digitizing small businesses in the country. “MSMEs will play a significant role in reviving India’s economic growth and achieving its vision of becoming more self-reliant. Digital transformation will act as a catalyst for India’s development story going forward, and access to finances will be crucial to this transformation,” said Amitabh Kant, chief executive of government-backed highly influential think tank NITI Aayog, at a virtual conference Friday. He concludes “In this context, Facebook’s Small Business Loans initiative is a big step in the right direction and I’m happy to note that India is the first country where the company is launching such an initiative.”

Related Posts:

  • India: Google Partners With SIDBI In A $15m Fund To Give Loans To SMBs
    India: Google Partners With SIDBI In A $15m Fund To Give…
  • Google To Start Offering Loans To SMEs In India, Updates Maps With Promoted Pins
    Google To Start Offering Loans To SMEs In India, Updates…
  • The 5 Most Common Reasons SMEs Get Business Loans
    The 5 Most Common Reasons SMEs Get Business Loans
  • Nigeria Tech Training Startup Decagon, Raises $1.5 Million Seed Fund
    Nigeria Tech Training Startup Decagon, Raises $1.5 Million…
  • The Apple $100m Funded Racial Equity And Justice Initiative Has Started
    The Apple $100m Funded Racial Equity And Justice Initiative…
  • Finance: 5 Benefits Of Technology In The Lending Industry
    Finance: 5 Benefits Of Technology In The Lending Industry
  • Digital  Initiative Advocating For Digital Empowerment, Promises 36,000 Jobs.
    Digital Initiative Advocating For Digital Empowerment,…
  • Federal Government Moves To Probe Rights Violation By Loan Sharks
    Federal Government Moves To Probe Rights Violation By Loan…
Tags: businessCompanyfacebookindiaInitiativeloanprogram
Olagoke Ajibola

Olagoke Ajibola

Olagoke Ajibola is a creative writer and content producer with an eye for details and excellence. He has a demonstrated history of telling stories for TV, Film and Online. Aside from being fascinated by the power of imagination, his other interest are travel, sport, reading and meeting people.

BROWSE BY CATEGORIES

Receive top tech news directly in your inbox

Loading

Recent

Tesla Cybertruck Mass Production Won’t Start Until 2024

Tesla Cybertruck Mass Production Won’t Start Until 2024

January 27, 2023
Apple Reportedly Delays Development Of Its Own WiFi Chips

Apple Reportedly Delays Development Of Its Own WiFi Chips

January 27, 2023
Google Commits To Complying With EU Laws On Its Services

Google Commits To Complying With EU Laws On Its Services

January 27, 2023
Airtel Launches Its eSIM Technology In Nigeria

Airtel Launches Its eSIM Technology In Nigeria

January 27, 2023
In Spite Of The Sucess Of Genetically Modified Foods, Debates Abound

In Spite Of The Sucess Of Genetically Modified Foods, Debates Abound

January 27, 2023
How And How Not Gaming Can Be Used In Solving Real Problems

How And How Not Gaming Can Be Used In Solving Real Problems

January 27, 2023
Tesla Sues Former Employee For Allegedly Stealing Trade Secrets

Tesla Made The Most Money In 2022, But Its Future Still Rocky

January 26, 2023
Shutterstock Introduces Its Generative AI Image Tool

Shutterstock Introduces Its Generative AI Image Tool

January 26, 2023
Meta Agrees To $725M Settlement Of Cambridge Analytica Lawsuit

Meta Set To Reinstate Trump’s Facebook And Instagram Accounts

January 26, 2023
Here’s How ChatGPT Can Help Improve Your SEO

Here’s How ChatGPT Can Help Improve Your SEO

January 25, 2023

Browse Archives

January 2023
MTWTFSS
 1
2345678
9101112131415
16171819202122
23242526272829
3031 
« Dec    

About Us

TechBooky

TechBooky is a social Tech blog with a special focus on the budding African Technology sector. TechBooky is currently based in Abuja, Nigeria.

Subscribe to TechBooky

Enter your email address to subscribe to TechBooky and receive notifications of new posts by email.

Join 24 other subscribers.

Receive top tech news directly in your inbox

Loading

Popular Tags

AI (252) amazon (95) android (281) app (610) Apple (473) artificial intelligence (265) business (338) china (113) cloud (135) cryptocurrency (158) ecommerce (109) enterprise (239) facebook (472) gadget (448) gaming (160) google (545) government (381) guest post (108) instagram (137) internet (352) ios (249) iphone (210) microsoft (261) mobile (281) new feature (287) nigeria (276) privacy (135) research (134) samsung (139) security (374) smartphone (235) social media (671) software (415) startup (268) streaming (140) telecom (157) tips (340) transport (104) twitter (216) united states (191) users (132) videos (115) website (159) whatsapp (129) youtube (106)

Quick Links

  • Home
  • Africa
  • Business
  • Video
  • Metaverse
  • AI
  • Gadgets
  • Earnings
  • Tips

Popular Post

  • Trending
  • Comments
  • Latest
Download Free Editable Resume Templates – Word / Docx – 2022

Download Free Editable Resume Templates – Word / Docx – 2022

July 25, 2022
The Best Free PC Games

The Best Free PC Games

July 29, 2022
Recover Permanently Deleted Emails From iCloud Manually

Recover Permanently Deleted Emails From iCloud Manually

March 5, 2022
Resume and Cover letter Templates for free

Resume and Cover letter Templates for free

July 25, 2022
[Fixed] “Outlook Running Slow Windows 10” Issue

[Fixed] “Outlook Running Slow Windows 10” Issue

February 12, 2020
How is Technology Changing Our Definition of What It Means to Be a Human?

How is Technology Changing Our Definition of What It Means to Be a Human?

April 1, 2018
Tesla Cybertruck Mass Production Won’t Start Until 2024

Tesla Cybertruck Mass Production Won’t Start Until 2024

January 27, 2023
Apple Reportedly Delays Development Of Its Own WiFi Chips

Apple Reportedly Delays Development Of Its Own WiFi Chips

January 27, 2023
Google Commits To Complying With EU Laws On Its Services

Google Commits To Complying With EU Laws On Its Services

January 27, 2023
Airtel Launches Its eSIM Technology In Nigeria

Airtel Launches Its eSIM Technology In Nigeria

January 27, 2023
In Spite Of The Sucess Of Genetically Modified Foods, Debates Abound

In Spite Of The Sucess Of Genetically Modified Foods, Debates Abound

January 27, 2023
How And How Not Gaming Can Be Used In Solving Real Problems

How And How Not Gaming Can Be Used In Solving Real Problems

January 27, 2023

Recent News

Tesla Cybertruck Mass Production Won’t Start Until 2024

Tesla Cybertruck Mass Production Won’t Start Until 2024

January 27, 2023
Apple Reportedly Delays Development Of Its Own WiFi Chips

Apple Reportedly Delays Development Of Its Own WiFi Chips

January 27, 2023
Google Commits To Complying With EU Laws On Its Services

Google Commits To Complying With EU Laws On Its Services

January 27, 2023
Airtel Launches Its eSIM Technology In Nigeria

Airtel Launches Its eSIM Technology In Nigeria

January 27, 2023
In Spite Of The Sucess Of Genetically Modified Foods, Debates Abound

In Spite Of The Sucess Of Genetically Modified Foods, Debates Abound

January 27, 2023
How And How Not Gaming Can Be Used In Solving Real Problems

How And How Not Gaming Can Be Used In Solving Real Problems

January 27, 2023
  • About TechBooky
  • Submit Article
  • Advertise Here
  • Contact us
  • Privacy Policy
  • Disclaimer
  • Login

© 2021 Design By Tech Booky Elite

Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
  • Home
  • Africa
  • Business
  • Video
  • Metaverse
  • AI
  • Gadgets
  • Earnings
  • Tips

© 2021 Design By Tech Booky Elite