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 upto Rs 10,000,000 that requires minimum documentation to merchants across 1500 cities and towns in India. The interest rates will start at 1% per month and tenures up to 36 months, depending on the credit rating of borrowers. The loans are currently available to 10,000 PayPal merchants.
In a statement, Anupam Pahuja, Vice President – India, South East Asia, Middle East & Africa, PayPal said, “Economic activity across India has been deeply affected by the Corona virus pandemic, and it is now when our MSME’s and freelancer community require solutions to kickstart business activity. Accessing capital through traditional channels has always been a challenge for most small businesses. Our partnership with FlexiLoans 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.”
“We are committed to offer high quality lending solutions and experiences to Indian SME ecosystems and this partnership is a significant step forward. With our advanced data science models and deep expertise in assessing millions of MSMEs with digital footprints, we are excited to partner with PayPal and bring the Covid impacted MSMEs back to growth and harness the new opportunities,” said Abhishek Kothari, Co-Founder FlexiLoans.com, in a statement.