Personal loan will also be available on Flipkart now, the company got NBFC license from RBI, know what will be the benefits

Walmart-owned e-commerce platform Flipkart has got the license of non-banking finance company i.e. NBFC from the Reserve Bank of India (RBI). With this, Flipkart will now be able to distribute loans as well. Now the company will be able to give loans directly to customers and sellers on its platform. This is the first time that RBI has given an NBFC license to a major e-commerce player in India, allowing it to give loans but not to accept deposits.

RBI issued registration certificate

Most e-commerce platforms currently provide loans in partnership with banks and NBFCs. The license to give loans will enable India’s largest e-commerce firm Flipkart to give loans directly. The central bank issued a registration certificate to Flipkart Finance Private Limited on March 13. It is a document that officially recognizes a company as an NBFC.

Applied in the year 2022

According to the approval letter from the central bank, Flipkart applied for the license in the year 2022. US retail giant Walmart holds more than 80 percent stake in Flipkart. A report quoted a source with knowledge of the matter as saying that Flipkart may start its loan operations “in a few months”. The source said that the final decision on the launch will depend on various internal processes such as appointment of key management personnel and board members and finalization of business plans.

What is the company’s plan?

Flipkart plans to offer loans directly to its customers on its popular e-commerce platform and through its fintech app super.money. According to reports, Flipkart may also provide funding to sellers on its platform. Currently, the e-commerce giant offers personal loans to customers through partnerships with lenders such as Axis Bank, IDFC Bank and Credit Season.