As part of an effort to get more companies to advertise on Facebook, the company’s country head said on Friday that it is collaborating with an Indian online lending agency to assist give loans to small local firms.
According to Ajit Mohan, Facebook India’s managing director, the social media giant is teaming up with Indifi to assist give loans ranging from Rs. 5,00,000 to Rs. 50,00,000 with annual interest rates as low as 20%.
Facebook claims that supporting India’s small company industry would pay off since these businesses will utilise Facebook products like Instagram and WhatsApp to help them expand.
“We’re not seeking to earn money from this programme, and we don’t have any revenue sharing… but we’re expecting to see development in the sector that will eventually benefit us,” Mohan said, noting that Facebook has made no financial contributions to the initiative.
Small companies that have advertised on Facebook or its group apps for at least 180 days are eligible for the loans. In addition, the initiative may encourage more of these businesses to promote on the social network and its applications, which are extremely popular in India.
With over 410 million users, India is a significant growing area for Facebook, and its WhatsApp messenger claims India as its largest market with over 530 million users. In India, Instagram has over 210 million users and has benefited from a ban on TikTok, a Chinese short video site, last year.
Facebook invested $5.7 billion (approximately Rs. 42,402 crores) in Mukesh Ambani’s Jio Platforms digital company last year, allowing WhatsApp to offer payments services to millions of small businesses.
Separately, WhatsApp intends to expand its cooperation with banks in order to provide financial services including pensions and insurance.