Alibaba Group Holding Ltd teamed up with seven banks on Tuesday, jointly offering loans of up to 10 million yuan ($1.6 million) to China's small and medium-sized enterprises as the e-commerce conglomerate looks to further build a credit rating system based on online transaction histories.

The cooperation involves Bank of China Ltd, China Construction Bank Corp, Ping An Bank Co Ltd, China Merchants Bank Co Ltd, Bank of Shanghai Co Ltd, Postal Savings Bank of China Co Ltd and Industrial Bank Co Ltd.

According to the Hangzhou-based e-commerce giant, companies that had export transactions of more than $100,000 through Alibaba's online platforms over the past six months can apply for such loans. They can get 1 yuan worth of bank credit for every $1 in exports.