Facebook has announced that it will help small start-up businesses in India get loans ranging from 5 lakhs to 50 lakhs. Tying up with an online lending company, with interest rates ranging from 17 to 20 percentage, Facebook has planned on implementing the new idea.
Ajit Mohan, director of Facebook India, has stated that "Facebook doesn't have any intention to make profits with this new programme." The loans will be available for those who advertise on FB or group apps for 180 days. FB has over 410 million users in India, 530 million WhatsApp users and 210 million Instagram users. Facebook has first launched this Small Business Loan Initiative for the very first time and, India is the first country where Facebook has implemented the idea.
Facebook had said that it plans on tying up with several other lenders and, Facebook won't contribute any money to this programme. 0.2 percentage discount will apply to businesses owned by women.
