Bengaluru: Flipkart, the e-commerce platform owned by Walmart, announced on Friday its collaboration with Axis Bank to distribute personal loans on its platform, further expanding its range of financial services.
With a customer base of 450 million, Flipkart will offer loans of up to Rs. 5 lakh, which can be repaid over a period of up to three years, as stated in their official statement.
This announcement comes amidst recent reports highlighting the Reserve Bank of India’s concerns regarding the rapid growth of unsecured lending, particularly in segments such as personal loans and credit cards.
According to Flipkart, “As Indian consumers continue to evolve, an increasing aspiration exists to enhance their lifestyles.” The partnership with Axis Bank, the third-largest private sector lender, will empower customers with greater purchasing power, the company added.
Dheeraj Aneja, Senior Vice President for Fintech and Payments Group at Flipkart, highlighted that the e-commerce platform already provides financing options such as Buy Now Pay Later (BNPL), Equated Monthly Installments (EMI), and Co-branded Credit Cards to support buyers. Aneja emphasized that their focus is to offer credit and improve purchasing power by providing access to liquidity when needed. These financial solutions aim to meet the evolving demands of consumers, offering enhanced flexibility and convenience throughout their purchasing journeys.
Sameer Shetty, President and Head of Digital Business and Transformation at Axis Bank, expressed his confidence in the partnership, stating that it will enable the bank to extend lending to a broader spectrum of customers.
Under this collaboration, customers will benefit from quick loan approvals, with the process taking as little as 30 seconds, as per the official statement.
It’s worth noting that e-commerce giants like Flipkart and Amazon recently faced scrutiny from the government due to concerns about “dark patterns.” The government urged e-commerce companies to establish self-regulatory frameworks to curb such practices. Dark patterns refer to deliberate exploitation of consumers on the internet, including tactics like adding items to a shopping cart without consent, altering product prices during checkout, or creating false urgency to manipulate buying decisions.
By venturing into personal loan distribution through its partnership with Axis Bank, Flipkart aims to strengthen its financial services portfolio and cater to the evolving needs of its vast customer base, providing them with convenient and accessible credit options.
