Exclusive-Amazon, Flipkart take aim at India's banks with new consumer loan offerings

Group 1 - Amazon is preparing to offer loans to small businesses in India, while Flipkart is exploring buy-now, pay-later (BNPL) products as they compete with local banks in the financial services sector [1][2] - Amazon acquired Bengaluru-based non-bank lender Axio, which will focus on BNPL and personal loans, and plans to offer credit for small businesses and cash management solutions [2][3] - Flipkart registered its non-bank lending arm, Flipkart Finance, and is awaiting approval from the Reserve Bank of India (RBI) to launch its financial products [3][4] Group 2 - Flipkart plans to offer no-cost monthly installment loans for online shoppers and loans for consumer durables with interest rates between 18% and 26% per annum, which are higher than traditional lenders' rates [4][5] - The consumer loan market in India has grown from nearly $80 billion in March 2020 to around $212 billion by March 2025, indicating significant growth despite recent signs of a slowdown [5] - Both Amazon and Flipkart are among the top 10 platforms for payments via India's Unified Payments Interface, and their lending ambitions were bolstered by the RBI's decision to allow them to lend directly to customers [6]