PayPal Partners with FlexiLoans.com to Offer Collateral-free Term Loans

Digital payment platform, PayPal ventured into a partnership with FlexiLoans.com, leading digital lending platform. This partnership has been initiated to offer a collateral-free business loans to women entrepreneurs, freelancers, sole proprietors and MSMEs.

However, the partnership intends to provide MSMEs working capital for business expansion, inventory, purchasing stock, and various other business-related expenditures.

In a release, the company states, "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."

Using this partnership, PayPal is intending to reiterates its commitment to democratise access to financial services by bringing its global best practices and credit solution capabilities to Indian merchants who sell cross border via PayPal.

Commenting on the partnership and launch of the credit solution, Anupam Pahuja, Vice President, India, South East Asia, Middle East & Africa, PayPal says, “Economic activity across India has been deeply affected by the coronavirus pandemic, and it is now when our MSMEs and freelancer community require solutions to kickstart business activity. Accessing capital through traditional channels has always been a challenge for most small businesses."

He further adds, "Our partnership with FlexiLoans.com and combined expertise 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.”

The partnership is in line with PayPal’s mission to offer innovative credit solutions and would allow the borrowers to access term loans from Rs.50, 000 up to Rs.10,000,000 through a fast, hassle-free process that needs minimal documentation to merchants across over 1500 cities and towns in India. The tenure of the loan would range from 6-36 months.

Abhishek Kothari, co-founder, FlexiLoans.com says, "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 extremely excited to partner with Paypal, the global leader in payments and bring the COVID-impacted MSMEs back to growth and harness the new opportunities."