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Several banks and NBFCs have loan schemes for businesses operating in different industries. For example, agricultural loans, loans for the steel industry, business loans for one-person companies, and so on. However, many times challenges of an e-Commerce business remain unsolved. To resolve these challenges, Amazon has tied up with various banks, NBFCs, and FinTech companies that offer loan schemes for Amazon sellers that are commonly known as Amazon Sellers Loan.
What are the features and benefits of Amazon Sellers Loans? How can you apply for it? This article answers these and many more questions.
Benefits of Amazon Sellers Loans
One of the greatest benefits of Amazon Sellers Loan is that it is designed specifically for Amazon sellers. It means that the loan considers various funding challenges Amazon sellers face. As a result, here are some of the benefits that Amazon Sellers Loans offer:
- Easy to avail: Sine the Amazon Sellers Loan is designed for e-commerce sellers; it is comparatively easy to apply for. Many times, these loan schemes have special offerings for sellers.
- Collateral-free: Most of the Amazon Sellers Loans are collateral free. It means that borrowers do not need to promise any collateral while obtaining the loan.
- Repayment flexibility: While most banks’ preferred loan repayment method is EMI, Amazon Sellers Loans usually have repayment flexibility. In most cases, borrowers can pay weekly too. Such flexibility is a favourable feature for sellers on e-commerce platforms.
Purpose of the Amazon Sellers Loan
Just like a working capital loan, Amazon sellers can use the obtained loan for various purposes, such as:
- Maintaining the right inventory for the business: For any business owner dealing with various products, streamlined inventory management is one of the key requirements. With the help of a loan, you can streamline the operations and maintain desired inventory turnover ratio.
- Resolving cashflow crunch: One of the key issues that many MSMEs face currently is cash flow. You can get a loan to resolve your cash flow crunch.
- Conducting marketing activities: With the help of funding, you can plan marketing activities to expand your reach.
Eligibility for obtaining Amazon Sellers Loan
Here are the eligibility criteria for obtaining an Amazon Sellers Loan. Some of the criteria may as vary depending on the lender.
- You need to be in partnership with Amazon at least for 6-12 months.
- There should not be any serious customer complaints against you.
- The turnover of your business should be at least ₹75,000.
- There should not be any trademark or copyright violation claims against you.
Documents required to obtain Amazon Sellers Loan
Amazon Sellers Loan also requires the same list of documents required to obtain a business loan. Here is the list:
- Filled application form
- Personal identity documents: Aadhaar card, PAN card, Voter’s ID, Passport, etc.
- Address proof: Aadhaar card, Voter’s ID, Passport, etc.
- Bank statement for the last 6-12 months
- Profit and loss statement
Note: A list of documents required to apply for an Amazon Sellers Loan varies from the lending institution. Hence, it is best to get a list of documents from the lender.
How to apply for an Amazon Sellers Loan?
- Firstly, determine the amount of loan you need. It should be sufficient enough for your business needs.
- Check the list of lenders that offer Amazon Sellers Loans.
- Visit the website of the lender or download the app.
- Learn the eligibility criteria and required documentation.
- Fill out the form online.
- Upload required documents in the prescribed formats.
Usually, NBFCs and FinTech companies are a have quick turnaround time for approval and disbursal of the loan.
Concluding remarks: Tips to get a business loan
- Determine your requirement for a loan carefully. Calculate the amount of loan you need and apply for the same amount.
- Plan how you are going to spend the money. Prioritise needs and allocate funds diligently.
- It is a good idea to keep a business plan ready. You may not require it for a loan application however, it can act as a roadmap for your business.
- While applying digitally, understand the accepted formats by the lenders. Generally, .jpg, .png, and .pdf formats are accepted for uploading documents.