walmartowned Flipkart announced on Friday that it will deliver Axis Bank personal loans on the e-commerce platform.
The platform with 450 million customers will disburse loans of up to Rs 5 lakh, repayable over three years, it said in a statement.
The announcement comes amid reports of RBI concerns over high growth in the high-risk unsecured debt segment such as personal loans and credit cards.
“As Indian consumers evolve, their aspirations to enhance their lifestyle are on the rise,” said Flipkart in a statement.
It added that the tie-up with the third largest private sector lender will empower customers with increased purchasing power.
Dheeraj Aneja, senior vice-president, fintech and payments group, Flipkart, said the e-commerce platform already has support for buyers with buy now, pay later (BNPL), equated monthly installments (EMI), and co-branded Offers financing opportunities such as credit cards.
“Our focus is to enable credit and enhance purchasing power by providing access to liquidity when needed. These financial solutions meet the growing demands of consumers, offering greater flexibility and convenience during their shopping journey,” said Aneja.
Axis Bank President and Head of Digital Business and Transformation, Sameer Shetty said that the bank will be able to offer loans to a wider spectrum of customers through the partnership.
Under the partnership, customers will be able to get loan approval in 30 seconds, the statement said.
e-commerce giants like Flipkart and Amazon Last month when the central government came under attack took took a serious note of ‘dark patterns’ and asked e-commerce firms to create a self-regulatory framework to prevent such practices.
Dark patterns refer to practices that intentionally exploit consumers on the Internet, such as adding items to a shopping cart even if the user has not opted in, changing the price of a product at checkout, or even creating a misconception Quickness to proceed with the purchase decision.