Chennai: Growing working capital requirement has led to doubling of the average ticket size of e-commerce business loans.
FlexiLoans officials said that the average ticket size of working capital loans has risen from Rs 3.5 lakh to Rs 5 lakh. Its co-founder Deepak Jain said, “We see higher demand from businesses with working capital requirements on e-commerce platforms. We do expect higher demand going forward and grow our supply chain and co-lending verticals which are witnessing significant growth and traction in the post Covid times.”
Another private financier CredAble which has lent over Rs 300 crore in September and October has seen its average loan ticket size double at Rs 1.75-Rs 2 crore in the last three months. Its COO Ram Kewalramani said, “Demand for working capital loan has gone up by 1.75 times in the last three months, on the back of rising demand for consumer goods and e-tailers wanting to stock up those goods. We also lend against the invoice of merchants who sell on e-commerce platforms. Not just merchants, even logistics companies which have tied up with e-commerce companies have applied for additional working capital loan to meet the rising demand during the festive season.”
CredAble lends in the range of minimum of Rs 20 lakh and a maximum of Rs 7-Rs 8 crore. Its interest rate stands between the range of 7% and 18%. From lending against an entrepreneur’s balance sheet, lenders say they have shifted towards milestone lending, invoice-based lending, etc.
Most lending platforms say there is no hike or revision made on the interest rate charged this year.
Non-banking finance company Finway has seen over 35% increase in the average ticket size of loans from Rs 4.5 lakh to Rs 6 lakh in the last few months. Its founder and CEO Rachit Chawla said,“In our loan book size stands at Rs 100 crore every month across the country, loans to unsecured online sellers account to 11%, which has now grown to 15%-16% (i.e) Rs 15 crore- Rs 16 crore in the last few months. We see this movement only moving upwards.
Besides, the customer base (i.e) borrower base has seen a growth of 20%-25% in the last two months, driven by optimistic lenders who want to cash on the rising cash flow and faster expansion plans of e-Commerce companies. “We see this sector as the most profitable segment in the current market scenario. However, lenders have to be cautious as this is an unsecured segment which is not backed by any collateral or security,” Chawla added. On revising the rate of interest, lenders say no changes are made to borrowing rates, as retaining existing customers and acquiring new customers will be the focus in the current market situation. The rate of interest ranges between 6.5%-7% and 18%-20%.
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