Indian financial services company Bajaj Finserv is to offer an Easy Monthly Instalment (EMI) plan to start-up companies in the ecommerce sector.
Unlike their previous EMI options, which were for specific products, this new option will be for the total value of all products and services purchased.
Vice-Chairman Sanjiv Bajaj said that Bajaj Finserv may also take a strategic stake in promising start-up companies within the financial technology sector. “I spent some time in Silicon Valley recently and met some of the start-ups, half of which were run by Indians, as well as companies like Amazon and Microsoft,” Bajaj told TieCon, a conference of entrepreneurs held at Pune last week.
He continued, “We want to tap into the opportunities available there as well as in India and may look at investing in fintech companies, maybe even take a strategic stake if it makes sense for us.”
The new EMI options are an extension of Bajaj Finserv’s Durable Finance loans, which allow customers to buy products like laptops and TVs with on-the-spot approval and fixed monthly payments. A swipe and sign card, which they can use at any participating store, enables them to buy now and pay later at a fixed monthly rate. Customers can make additional repayments if they have extra money on hand, in order to pay the loan off quicker. The card includes all the documentation that one would normally need in order to apply for a loan, so eligibility is guaranteed.
Bajaj Finserv also offers more traditional loans to ecommerce start-ups. Their ecommerce seller finance loans feature instant approval with funds reaching the customer’s bank within three days, exclusive preapproved offers, online access to the loan and zero foreclosure charges. Applicants do not need to provide guarantors or collateral.