Paytm to facilitate collateral free loans for sellers

2015 seems to be the year of focus on online sellers with online marketplaces voicing out their desires to get as many merchants on board their respective platforms as possible. Working capital is a primary requirement for advancement.

Sensing this and understanding the gravity of the need for funds, online marketplaces are extending their assistance to sellers in securing funds. The latest to do this is Paytm through tie up with Aditya Birla Finance Limited according to which sellers can avail of collateral free loans.

“It is an agreement between a seller and a financing company. The payment towards the loan will be managed through an Escrow account. We will only provide the financing companies with the data on seller performance and create a partner network,” said Renu Satti, VP of SME business at Paytm.