The bank has initially tied up with e-commerce major Snapdeal to offer instant loans to its sellers. "The e-commerce growth has created a new ecosystem enabling more than 5 lakh sellers to sell product on digital platform. It has also opened up opportunities for the banking industry," SBI chairman Arundhati Bhattacharya told reporters here today.
    
SBI E-Smart SME will use data analytics gathered by Snapdeal to assess the sellers credit worthiness, instead of traditional lending based on financial statements like balance sheet and income tax returns. The bank is also planning a similar tie-up with Flipkart, Paytm and Amazon going forward, she said.
    
"The biggest challenge for SMEs is to raise financing through formal banking is often they don't have collateral or a long history of financial statements to give confidence to lender.
    
"Through this real time analytics tool we have created with SBI, we can assign a credit score to all sellers on our platforms," said Snapdeal co-founder and CEO Kunal Bahl. In one year, through its Capital Assist Program, Snapdeal had lent over Rs 250 crore to 1,000 sellers. In this year, it is targeting Rs 1,000 crore loans to SMEs, he added.

 

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