WHY IN THE NEWS?
Facebook India has launched a new initiative called the “Small Business Loans Initiative” on August 20, 2021.
Aim of the initiative
Facebook launched this initiative with the aim of making business loans more easily accessible to small businesses. It also seeks to reduce the credit gap within India’s MSME sector.
Why this initiative was launched?
As per “Future of Business” survey that was conducted by Facebook in association with OECD & World Bank in 2020, a third of operational SMBs on Facebook in 2020 found cash flow as one of their primary challenges. So, to provide them with loans, this initiative was launched.
Interest on Loan
Through the partnership between Facebook and Indifi, small businesses advertising with Facebook can be given loans at a predefined interest rate of 17-20 per cent per annum. This initiative will also enable small businesses to get loans without collateral by means of a quick online application.
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