SBI, HUL pact for easy credit access and payment solutions to retailers

The country’s largest lender, State Bank of India (SBI), and packaged consumer goods company Hindustan Unilever (HUL) on Thursday announced a partnership to enable credit access to small retailers, dealers and customers.

The partnership will also offer digital payment solutions for small store owners and distributors of the company’s products.

After the tie-up, HUL’s retailers will be able to avail credit facility through HUL’s ‘Shikhar’ app.

HUL’s Shikhar app is an online ordering platform designed for its retailers. The bank will also offer instant paperless overdraft facility of up to Rs 50,000 to retailers.

Sanjiv Mehta, chairman and managing director, HUL, said the partnership will help its ecosystem of traders and retailers. “These trader ecosystems have been working in informal environment and they do not have access to credit. There is also a reluctance to adopt digital technology.

“So, this partnership will try to resolve these constraints,” Mehta said.

Rajnish Kumar, chairman, SBI, said “We are glad that SBI has got an opportunity to leverage its strong geographic presence and strategic digital solutions to simplify the financial needs of HUL’s customers, retailers, dealers, and employees.”

To ensure customers get the option of digital payments in smaller towns as well, the bank will install SBI point of sale (POS) machines at multiple HUL touchpoints across the country.

Additionally, SBI will provide UPI (unified payments interface) based solutions to HUL retailers for hassle-free, safe and instant cashless payments to their dealers from HUL’s retailer application ‘Shikhar’.

The bank will also offer HUL employees the option of a corporate salary package through an SBI microsite hosted on HUL’s intranet.