Business

Goldman Sachs to finance Mercado Libre loans to SMEs in Brazil

The BRL 400 million line will be used for loans granted through Mercado Pago, the company's financial arm

Photo: Reuters/Brendan McDermid/File Photo
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  • Last year, Goldman Sachs granted a BRL 125 million loan to Mercado Libre in Mexico;
  • Mercado Pago operates in Brazil, Argentina, and Mexico.

Goldman Sachs has granted a BRL 400 million credit line to finance loans from Mercado Libre to micro and small companies in Brazil, according to a statement on Thursday.

The loans will be granted through Mercado Libre’s financial services arm, Mercado Pago.

READ ALSO: Mercado Libre buys a stake of Brazilian logistics startup Kangu to boost e-commerce

Goldman Sachs said the credit line is one of the largest it has ever provided for a fintech in Brazil. Last year, Goldman Sachs granted a BRL 125 million loan to Mercado Libre in Mexico.

Mercado Pago operates in Brazil, Argentina and Mexico.

READ ALSO: Mercado Libre’s active users jumped 45% in the second quarter

In April, Mercado Pago said it was extending a BRL 600 million credit line to help small businesses cope with the economic impact of the coronavirus pandemic.

Translated from Portuguese to English by Fabiane Ziolla Menezes