Here Are Terms, Procedures To Apply For Flipkart Seller Loans

Overview

Flipkart is one of the significant E-retail websites in India. Selling almost everything under the sun, it specialises in apparel and electronic goods. Currently, it holds nearly 40% market share in the Indian E-commerce industry with a whopping annual turnover of Rs 43615 crores (USD 6.3 billion). Such a large market place offers excellent business opportunities to E-com sellers taking advantage of the broad reach provided by Flipkart. Huge business volumes in the platform make it imperative for the seller to meet fund needs through Flipkart seller loans.

Opportunities for a Flipkart seller:

The critical factors for a seller to choose Flipkart are its maximum online reach and credibility. The site boasts of 10 million daily page visits from about 10 crore customers coupled with low cost of doing business, consistent promotions and sales events help sellers grow their online business exponentially.

Who can sell at Flipkart:

The primary requirement at Flipkart is to be eligible to sell and register as a seller. The criteria defined for Flipkart sellers are:

• PAN card both personal and business, depending on ownership.

• Minimum 1 unique product to sell.

• Bank account and other KYC documents.

• GST registration.

With these documents in place, any new seller of a genuine product is welcome to join the enterprise. The procedure to start selling is:

• Register as a seller at Flipkart.com

• List products in specific categories.

• Once the order is received, pack it and mark as “Ready to Dispatch”.

• The logistic partner will pick up the consignment and deliver it to the customer.

• Settlement of payment in 7 to 15 business days.

When does a seller need a business loan?

E-commerce is a booming industry, offering ample scope for growing business. The traffic in E-commerce is volatile, which can sometimes result in sales spikes. To reap the optimal benefits of the E-commerce era, it is necessary for the seller to be ready with funds at all times. A business loan is the best bet for the seller to be in harmony with the requirements of online selling. Some of the critical funding needs are:

• Inventory Management: Funds for ample stocks is one of the primary ways to be a successful online seller.

• Business Expansion: Funds to cope with big sales surge.

• Consistent Liquidity: Funds for running daily operations and smooth cash flow for efficiency and help business grow.

• Product Promotion: Enough funds are required to gain an edge over competitors with active promotion of products.

Types of Business Loans for the Flipkart seller:

There are two types of business loans based on risk factors and applicable interest. They are:

• Secured Business Loan: It is so called because you pledge some asset to cover the business loan. The risk factor being lower, the applicable interest is also lower.

• Unsecured Business Loan: You do not have to pledge assets for the borrowed fund. Thus the loan is without any collateral rendering it a high-risk loan. The rate of interest applied is also higher.

The other way to classify Flipkart seller loans is based on repayment timelines.

Regardless of such category of business loan, they are again broadly classified as Term Loan and Line of Credit.

• Term Loan: The loan amount is disbursed in a single tranche to be repaid in a fixed defined timeline. It is repaid in fixed instalments.

• Line of Credit: It is an overdraft facility where you can draw and repay at will based on need. Interest is limited to usage of funds, thus reducing the interest burden.

How to apply for Flipkart Seller Loans:

Looking and arranging for funds is a challenge to any small business entity. Flipkart themselves have their Seller Financing Program. This provides the seller with an additional choice for sourcing funds. Flipkart has tied up with prominent banks both in the Public and Private sector, NBFCs, and Digital lenders. Loans up to Rs.1C at a competitive interest rate as low as 9.5% delivered in 48 hour time make it attractive. In some cases, amount, as much as Rs.3 crore can be borrowed to be repaid in 12 months. Having got familiarized with the features of business loan, the first step is to check for eligibility.

Eligibility criteria for Flipkart Seller Loans:

The requirements vary across lenders depending on the type, quantum and purpose of the loan. However, it may be generalized as:

• Age should be minimum 21 years and maximum 65 years.

• The applicant should have a minimum annual income of Rs.1.50L.

• The minimum loan amount is Rs.25,000 and maximum Rs.2 crore. In tie-up banks, it can be raised to Rs.3 crore.

• You must be a seller at Flipkart for six months.

Documents required for Flipkart Seller Loans:

Even the documentation is simplified with creditworthiness being assessed through real financial data analysis. Basic documents required are:

Personal:

• KYC including Pan card

• Address proof of residence

Business:

• KYC including PAN card

• Business Registration, Tax compliance certificate etc.

• Bank account statement for six months.

• ITR for two years as income proof

• Certificate of business continuity from a bank.

Application Procedure for Flipkart Seller Loans:

The procedure is quick and straightforward as it is online, which can be done from anywhere at any time. The process entails a few simple steps.

• Filling up an online application, upload of documents and waiting for approval.

• The lender evaluates the loan and makes an offer.

• Acceptance of the offer and receive funds in the business account.

Benefits and Terms of Flipkart Seller Loans:

Conclusion:

It is evident that there is ample scope for availing of Flipkart Seller Loans from multiple sources. It is for the seller to choose the best option based on terms and procedures that suit the business best to help it grow and expand.

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