Credit and Finance for MSMEs: Online MSME lender Lendingkart on Thursday mentioned it has hit the $1-billion loan disbursement mark considering the fact that it received its non-banking monetary organization (NBFC) license in 2015. The loans had been disbursed to 1.3 lakh MSMEs so far. Lendingkart, which competes with Indifi, Aye Finance, Flexiloans, Capital Float, NeoGrowth Credit, U GRO Capital, Kinara Capital, and more, in the MSME lending space, gives quick-term collateral-free of charge working capital loans with tiny or no credit history offered of borrowers. The loan size ranges from Rs 50,000 to Rs 2 crores with a repayment period of one to 36 months.
“We have witnessed a compound annual growth rate of over 200 per cent so far. This year we are planning to lend close to Rs 3,500 crore ($464 million). Last year was a bit of a patient-year for us as we did only reasonable business but from November till March was a great period. However, from April till June, it was again a breather for us but since July we are seeing much better business while September-October has been better than pre-Covid levels,” Harshvardhan Lunia, Co-Founder & Managing Director of Lendingkart Technologies told TheSpuzz Online.
The organization mentioned that based on its proprietary underwriting model, Cred8, which is a credit Intelligence platform, it has offered ‘credit sanctioned’ loans to 2.5 lakh MSMEs worth $1.6 billion. Moreover, by way of API and application-as-a-service (SaaS) platform Xlr8, launched in January this year, for channel partners and direct promoting agents to increase their MSME attain, the organization has concluded about 600 partnerships “which has witnessed multifold year on year growth,” Lendingkart mentioned.
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“Currently larger institutions are focusing more on secured loans while smaller businesses, which are considered risky, are not getting enough money. So larger institutions are not participating as much as they were before Covid. However, large private businesses are focusing on sectors like renewable energy, retail, etc., where investment is being made massively. This is expected to continue for two-three years. As a result, the MSME cycle will run well which is also good for us,” mentioned Lunia
The organization had last November launched its co-lending SaaS platform Lendingkart 2gthr to allow banks and NBFCs to seamlessly onboard inside two weeks and disburse unsecured loans to MSMEs. Lendingkart mentioned that inside 18 months, 2gthr has come to be the biggest co-lending platform onboarding seven substantial banks/ NBFCs and quite a few more in the pipeline with credit lines of more than $280 million. Lendingkart has secured more than $650 million in debt capital from more than 80 lenders so far.
Lendingkart’s investors contain Fullerton Financial Holding (FFH) — a subsidiary of Singapore Sovereign Fund Temasek Holdings, Bertelsmann, Mayfield India, Saama Capital, Sistema Asia, India Quotient, and other folks. According to World Bank estimates, the MSME credit gap in India is worth $380 billion when credit to micro and smaller enterprises (MSEs) by banks is only 10 per cent of the all round gross bank credit in the nation. Banks had deployed Rs 11.10 lakh crore to MSEs in August 2021 when total gross bank credit stood at Rs 108.97 lakh crore, the most recent information from the Reserve Bank of India had showed.