How to get short-term loans without security for selling on Flipkart/ Amazon / eCommerce Websites?
Dec 25, 2020
Since the beginning of this decade, online business has started booming. Watching the rising trend, E-commerce holds high promises for the future. Big brand names, such as Flipkart, Amazon, etc. have emerged and have occupied a stronghold over the market. However, finance plays a significant role to take online businesses to newer heights. Flipkart seller loans and Amazon seller loans are mandatory for smooth operation. These businesses are facing challenging times while trying to arrange for bank loans in the absence of security.
Basic Eligibility Criteria for Flipkart Seller Loans and Amazon Seller Loans
Most often, financial companies issue loans to borrowers against an asset. If you need an eCommerce business loan without collateral, you can apply with ease without presenting any guarantee or pledging an asset for it. Usually, lenders allocate funds for Flipkart seller loans and Amazon seller loans if you qualify the following basic eligibility criteria.
- A Flipkart or Amazon seller must have a minimum business vintage of one year.
- You qualify to apply for an eCommerce business loan if your minimum business sales are INR. 2,00,000/- monthly.
Requirements for eCommerce Business Loan
Lenders are facilitating Flipkart sellers/Amazon sellers, and eCommerce businesses to meet their large order volumes with short-term loans without security. You can meet your financial needs if you keep in mind the following pointers while applying for short-term loans without security. The sellers need to furnish certain documents to support the application form.
- You would need to present your buyer’s credit score at the time of applying for a short-term business loan. The bank needs to assess your credit score to approve your eligibility criteria to sanction the loan. A credit score summarizes your past credit payments, such as a credit card payments report, and your other loan repayments pattern to understand your credibility and honesty.
- The bank or lenders needs to understand your sales and purchases history to decide your loan sanction.
- You would need to show your financial statements to the lender.
- The tenure of the loan has to be specified.
- You need to mention the loan amount while filling up the form.
Public Collateral Free eCommerce Business Loan Schemes
Apart from the above pointer, it is also crucial to be aware of the following schemes.
Registered small businesses can submit a concrete business plan to attain a CGTMSE collateral-free loan. They can avail up to INR 1 crore. MUDRA Yojana. The repayment schedule is flexible and extends up to 5 years. The Member Lending Institutions charges interest rates as per the guidelines of RBI. However, interest charges do not exceed 13% pa.
There are three different schemes of the MUDRA yojana. Micro Units can avail a minimum of INR 50,000 of eCommerce business loan but cannot exceed INR 10 lakhs under the MUDRA yojana eCommerce Business Loan scheme. The repayment schedule and the interest rates are at the discretion of the MLI (Member Lending Institutions).
In all cases, the borrowers must fall under the business loan eligibility criteria to take advantage of short-term loans without security. With a surge of buyers opting for online shopping, sales on Flipkart, Amazon, and other eCommerce websites have become all-time high. The future lies in eCommerce businesses.