Calcutta, May 21: The State Bank of India today signed agreements with Snapdeal and PayPal, its third e-commerce deal in two days following the one with Amazon on Wednesday.
The tie-up with Snapdeal will enable the bank to provide loans to small and medium enterprises (SMEs) registered under the e-commerce platform.
The partnership with PayPal will enable SBI debit cardholders and SME customers to buy products from the overseas markets.
Under the capital-assist scheme with Snapdeal, the SBI will offer collateral-free loans of up to Rs 100 lakh to manufacturing units. Traders will get loans up to Rs 25 lakh without collateral. The rates will be in the range of 11.35-13.5 per cent and there will be a concession of 50-100 basis points, depending on additional collateral. Women entrepreneurs will get interest rate concession of 0.25 per cent.
"We have a huge difference in age (SBI is 209-years old and Snapdeal was founded in 2010) but it is a partnership of equals," said SBI chairperson Arundhati Bhattacharya.
"We have about 150,000 businesses, who are selling on our platform. But the only way these businesses will become more successful is if they have more liquidity," said Kunal Bahl, CEO of Snapdeal.
Vikram Narayan, managing director and country manager (India) of PayPal, said, "We will work together to offer PayPal solution to SBI's strong MSME account base."
"This tie-up offers a golden opportunity to offer the remitter to transact and make payment in India in a convenient way," said B. Sriram, managing director of the SBI.
