What is Flipkart?
If you have ever shopped online, there is a huge possibility that you must have come across one of the biggest online E-retail website Flipkart.
It is one of the earliest and the most influential website in the online business and provides a huge range of products from all categories which has made it one of the most successful in its field.
Flipkart has almost 40% market share in online commerce in the year 2017 and this fact is enough to understand its reach and its versitality.
Flipkart Seller Hub
Flipkart does not only take care of its customers but also has a dedicated process for sellers associated with it, and this e-commerce website goes to a great extent to help the sellers expand their business.
To help there sellers financially, Flipkart came up with their own division of Flipkart seller Loans. As we know, the requirement of capital is never ending in a successful business, may it be in any field and to maintain the work flow, they need to procure enough funds even if they have to take loan.
Now, the difference between general bank loans and Flipkart seller loans is huge in every sense, and the sellers gets a better service for specific online business needs at a much lesser cost through Flipkart seller business loans.
Keeping this in mind, let us discuss the whole process of procuring a loan from Flipkart seller finance hub, and why is it needed.
Need for Seller Finance:
Online commerce is a booming industry, and with the emergence of smart-phones, this industry has seen a great amount of traffic inflow in the last decade and to reap the benefits of this E-commerce era, a seller needs to have the right amount of funds ready with him at all times.
The need for funds could be there due to multiple reasons:
- Increasing Inventory: There might be a time when the seller thinks of having a good amount of stock beforehand so that he can complete his orders on time and for that, he needs a good amount of funding.
- Expanding Business: If the seller is having trouble handling increasing customer, he might have to establish a proper team for operations, and that functioning needs big bucks.
- Funds for daily functioning: The daily operations of any firm, whether small or big, is dependent upon the amount of money being spent regularly and for the smooth functioning of an organization, we need to have a good amount of capital ready with us.
- Product Promotions: This might be the most important and urgent need of an organization, if they are willing to spend a good amount on promoting the product online. This will definitely give them an edge over their competitors.
Types of Flipkart Seller Finance
To help merchants with some of their funding needs, flipkart started their own service for lending money at a lower cost. The flipkart seller finance is categorized into three division:
Types of loans
Time limit for loan payment
Repayment within 1 year
Repayment within 1-3 years
Long term loans
Repayment within 3-5 years.
In terms of Risk factor and interest rates, the loans can be divided into two categories:
- Secured Business Loans: These types of loans include a form of collateral in exchange for the money and has a lower rate of interest as the risk is much lower in this.
- Unsecured Business Loans: These loans do not include any type of collateral or security from merchant, but they levy a higher rate of interest on the amount.
Eligibility for applying for loans
The Flipkart seller business loans are subject to some of the basic criteria in which the merchant has to fall in order to be able to procure a loan form Flipkart seller hub.
- The person should be at-least 21 years of age and cannot be more than 65 years old.
- The minimum amount of loan must be 25000, and the Maximum loan amount can be up-to Rs. 2 crore for larger firms.
- The minimum annual income of the merchant must be >=1.5 lacs.
These are some of the basic information of procuring a loan from Flipkart seller finances, and it is one of the most secure and dependable type of loan procurement agency. As the risk is much lower, the interest rates are pretty low from conventional banks and the most important thing is that the seller can get a loan much faster if he opts for online loan procurement.
We, at Lendingkart believe that money is an important factor in running any form of business whether it be online or offline business and the need for funds can never be predicted.
So, every online seller must have an easier way to procure loans in a more efficient manner, and more funds should be provided in lesser cost for the merchant. This is the principle that we work on to provide the best service to our customers and we have one of the easiest loan payment options so that you can spend more of your time in expanding your business, rather than tensing about the payment of loan amounts.