RSSNewsletterSiteMapFeedback

Home · Weather · Forum · Learning Chinese · Jobs · Shopping
Search This Site
China | International | Business | Government | Environment | Olympics/Sports | Travel/Living in China | Culture/Entertainment | Books & Magazines | Health
Home / Business / News Tools: Save | Print | E-mail | Most Read | Comment
Alibaba to offer CCB loans to online sellers
Adjust font size:

E-commerce firm Alibaba.com Corp has joined hands with China Construction Bank to offer loans to individual sellers on its auction site to spur trading and expand its share in China's consumer-to-consumer market.

 

Vendors on its subsidiary Taobao.com, who often find it hard to gain bank loans, can get up to 100,000 yuan (US$13,698) in short-term loans if they have a good credit history, Alibaba said yesterday.

 

But applicants will have to pay higher interest rates of 8.21 percent a year for the bank to make a profit margin and to offset the risks. Sellers can apply for the loans when they have closed a deal but not yet received the money.

 

They must also be users of the Alipay system, which holds buyers' money in trust and won't send it to the sellers' bank accounts until buyers confirm they have received the goods and are satisfied with the quality.

 

About 40,000 to 50,000 sellers on Taobao are qualified for the program, judging by their business scale and credibility, according to Alipay.com, Alibaba's online payment subsidiary and the program operator.

 

"It's a good idea for us to develop small-loan business and meet the demand, especially in the booming e-commerce area," said CCB in a joint statement with Alipay.

 

The loan size cannot exceed the value of the deal, and the bank will recover the loan and interest directly through Alipay once the payment goes through.

 

The 8.21-percent interest rate compares to the basic six-month lending rate of 6.57 percent set by the central bank.

 

Shao Xiaofeng, Alipay's president, said it won't make a profit from the service, as the aim is just to "develop the size of China's Internet businessmen with a value-added service."

 

Most sellers on Taobao, China's most popular C2C platform, are self-employed and more than 80 percent of their investment comes from their personal income, according to Alipay.

 

(Shanghai Daily January 22, 2008)

 

Tools: Save | Print | E-mail | Most Read

Comment
Username   Password   Anonymous
 
China Archives
Related >>
- A new round of power shifts inside Alibaba
- Chinese to buy directly from US with online payment
- Open sesame: Alibaba enters net advertising
- Alipay Sets Up 'You Trust Me' Standards
Most Viewed >>
-January CPI expected to rise 6.5%
-Lucrative Yuanmingyuan duplication scheme
-Lenovo to sell mobile unit for US$100m
-Tight monetary policy must not be eased
-Emergency coal shipped to power plants in S China

May 15-17, Shanghai Women's Forum Asia
Dec. 12-13 Beijing China-US Strategic Economic Dialogue
Nov. 27-28 Beijing China-EU Summit

- Output of Major Industrial Products
- Investment by Various Sectors
- Foreign Direct Investment by Country or Region
- National Price Index
- Value of Major Commodity Import
- Money Supply
- Exchange Rate and Foreign Exchange Reserve
- What does the China-Pakistan Free Trade Agreement cover?
- How to Set up a Foreign Capital Enterprise in China?
- How Does the VAT Works in China?
- How Much RMB or Foreign Currency Can Be Physically Carried Out of or Into China?
- What Is the Electrical Fitting in China?
SiteMap | About Us | RSS | Newsletter | Feedback

Copyright © China.org.cn. All Rights Reserved E-mail: webmaster@china.org.cn Tel: 86-10-88828000 京ICP证 040089号