Facebook (FB) has finally landed in direct trade in India. This social media company will lend to small and medium businesses in the country.
No other country in the world has used Facebook as a financial institution to provide such loans. This is the first. In fact, it can be said from India that this new step of the social app company has started.
However, Facebook itself is not entering this trade as a financial non-banking organization. They have entered into a commercial agreement with an Indian financial institution. Loans will be disbursed through that agency. The social media giant announced the decision on Friday.
The Daily Vendor correspondent gathered that for the time being, loans will be given to small businesses, including retail and small and medium enterprises (MSMEs).
It was however learnt that there are some conditions attached to getting this loan. In other words, one of the conditions for getting a loan is that the company has to advertise on FB for at least 180 days.
However, Facebook will play a mediating role in getting this loan, and will not make any profit for now. And if the business owner secures the loan through the social platform, expansion of the concerned business organization or small and medium industry can be done and promoted on Facebook and WhatsApp.