Facebook India has tied up with financial technologies start-up, Indifi, to offer loans to small business owners, as part of its ‘Small Business Loan Initiative’. SMBs in over 200 cities across India can now avail of loans of up to Rs.50 lakhs to help develop and grow their small business. 

These loans shall be processed and sanctioned primarily by Indifi, an established financial technology company with a wide reach in India. Small Business clients of Facebook, who market their products and services via Facebook, can benefit from this loan scheme which offers up to Rs.50 lakhs loan to eligible applicants. 

What is the objective of this small business loan scheme being offered by Facebook?

Timely credit to deserving businesses is the vision of this loan scheme. This program is piloting in India and has already garnered huge support. With its 340 million-strong consumer base, Facebook is looking to empower small businesses in need of funds during these pandemic times. 

Also Read: Covid 19 Relief Measures For MSMEs

How does the loan scheme work?

  • Under the initiative, Facebook provides you access to hundreds of banks & NBFCs lending to small businesses
  • The loan process shall be carried out through Indifi
  • Indifi will process and sanction the loan
  • The benefit is that you get a large collateral-free loan amount for less interest rates and literally no processing fees
  • The application process is completely online

What are the benefits of getting a small business loan through this initiative?

The Facebook Small Business Loans Initiative was created with the goal of giving much-needed credit to small businesses that are truly deserving. The Corona pandemic has damaged the small business economy with thousands of small business owners having to closed down shop due to lack of business and dearth of funds. This initiative looks to build that gap by linking small business owners with lenders. Some of the features of this programme are: 

  1. Collateral free loans starting from Rs.2 lakhs to Rs.50 lakhs
  2. No processing fees & no hidden charges
  3. A single application to apply with different lenders, increasing your chance for loan approval 
  4. Quick processing of loans and disbursal within 3 business days
  5. Pre-defined interest rates of 17-20% irrespective of the loan amount
  6. Get a repayment tenure of 18-36 months
  7. 0.2% rebate in interest rate for women borrowers
  8. A completely online application process to provide better transparency of the loan process
  9. Constant updates on your loan status

Who all are eligible to apply for the Facebook IndiFi Small Business Loan?

  1. Your business must be located in one of the below Indian Cities

Agra

Dehradun

Kochi

Puducherry

Ahmedabad

Delhi-NCR

Kolkata

Pune

Ahmednagar

Dhanbad

Kota

Raigarh

Aligarh

Durg-Bhilai

Kozhikode

Raipur

Allahabad

Erode

Krishna

Rajkot

Alwar

Goa

Latur

Ranchi

Amritsar

Gorakhpur

Lucknow

Salem

Asansol

Guwahati

Ludhiana

Sikar

Aurangabad

Gwalior

Madurai

Solapur

Bangalore

Hyderabad

Mangalore

Surat

Bareilly

Indore

Meerut

Thanjavur

Belgaum

Jabalpur

Moradabad

Thiruvananthapuram

Bhavnagar

Jaipur

Mumbai

Tirupur

Bhopal

Jalandhar

Mysore

Trichi

Bhubaneswar

Jamnagar

Nagpur

Udaipur

Chandigarh

Jamshedpur

Nasik

Ujjain

Chennai

Jodhpur

Nellore

Vadodara

Chittoor

Kachchh

Panipat

Valsad

Coimbatore

Kancheepuram

Patiala

Varanasi

Cuttack

Kanpur

Patna

Vijayawada

Visakhapatnam

Warangal

 

 

 

  1. You must have been an advertiser on the Facebook family of apps for at least 180 days at the time of application.
  2. Your business should be duly registered with a valid trade license
  3. Though applicant age is not a criterion, loans shall be processed based on the health of the business

Additional Read: Different Types Of Business Loans

How do I apply for the Facebook Indifi Small Business Loan?

  • You can contact Indifi directly about this loan and application process. 
  • They have an option to apply online through their website
  • You can also call their customer care at 0124-6072247 to learn more about this loan product
  • Or, send an email to assist[at]indifi[dot]com

What are the documents required to apply for Facebook Indifi Small Business Loan?

  1. KYC of the promoter(s)
  • PAN card
  • Any one of the four National IDs (Aadhaar, Voter ID, Driving License or Passport)
  • Proof of current residence address (if not updated on National ID)
  1. KYC of business
  • Registration proof
  • PAN card & 
  • Constitution documents
  1. Business income – latest 6-month bank statement of business-related accounts
  2. Ownership proof document if the current residence/ business premises are owned

Is the Facebook Indifi Small Business Loan a good option for MSMEs?

The main objective of this loan is to help struggling MSMEs get the much-needed credit to boost their business. This one-of-a-kind initiative by Facebook has been launched in India to help millions of their MSME partners. The loan, of up to Rs.50 lakhs, is offered collateral-free, and without any processing charges. It also comes with a fixed interest rate, irrespective of the loan amount. This loan could really be a boon to ailing MSMEs looking to come out of some serious financial troubles caused due to the recent Corona Pandemic. 

Facebook Indifi Small Business Loan FAQs: 

  1. What is the processing fees on Facebook Indifi Small Business Loan?

The loan is processed by Indifi without any processing fees. 

  1. My business is located in a city not mentioned in your list. Can I still apply?

Sorry, the loan is currently being processed only in the cities mentioned in the above list. The loan will be expanded to your city soon. 

  1. Can I apply for more than one loan if I have multiple businesses registered under my name?

No, an individual can apply only for one loan under this scheme. 

  1. Are there any tax benefits for availing this loan?

No, this is a financial loan scheme for MSME businesses and does not give you any tax benefits. 

  1. What collateral or security should I give for this loan?

This is a collateral-free loan and so you need not submit any.

  1. What is the time taken for the loan process?

The loan application and disbursal process will take a total of 7-10 business days. 

  1. Will Indifi check my credit score to process this loan?

Yes, your credit score does play a vital role in loan approval. 

  1. Will my business health affect my loan eligibility?

Definitely. A profit-making business is a much desirable candidate for this role. 

  1. What are the repayment options available on this loan?

The loan can be repaid in EMIs of 18-36 months. You can repay by setting a NACH mandate or by submitting post-dated cheques. 

  1. Can I get some kind of moratorium period on this loan?

No, there is no moratorium period available for this loan. 

  1. Are there any part-payment or pre-closure charges?

You can make part payments whenever you have surplus money. There are no charges for that. However, for pre-closure, there is a charge of 4% of the total outstanding amount.