appliances supply and repair shop D Smart, says, “For
SMEs like us, capital requirements are mostly time-
sensitive and the lengthy documentation process
of banks are challenging and time-consuming. The
procedure at Lendingkart is simple and hassle-free and
their rate of interest is low as well. I received the loan
for my business expansion on time, which made a big
difference.” For small businesses with working capital
requirements, lack of funds can sometimes mean
shutting down the entire business.
The use of machine learning, algorithm-based
underwriting models for lending is a distinguishing
feature of Lendingkart. It operates with a branch-less
model to source and disburse loans to the customers,
Lunia explains. Unlike traditional financial institutions
where credit decisions can take months, Lendingkart
boasts of disbursing loans to clients within 72 hours
from the time of application.
Banks and other formal institutions are present in
various parts of our country. Yet for SMEs and MSMEs
from smaller trade hubs, accessibility to formal credit
has not been easy. Lunia explains that banks are only
accessible in the top 250 or 300 cities. While a large
share of India’s business comes from these cities,
there are other smaller cities and trade hubs that are
contributing significantly towards India’s GDP, but do
not have access to formal credit options.
Lendingkart has built its own platform through
various technologically enabled features to create deeper
penetration into the remotest corners of the country,
where traditional financial institutions have not been
able to reach. 25-year-old Shvet Sanghvi, who runs
Shrenik Enterprise, a packaging material company based
in Kalupur, Ahmedabad, states, “I was looking for loan
for my business expansion. I was frustrated with banks
as they require lots of documents. While exploring my
options online, I found Lendingkart and installed its
mobile app and provided my details. I got a call from
them immediately, after submitting preliminary details. I
received the loan within a few days.”
So far, Lendingkart has disbursed working capital
loans in more than 950 cities and towns. Lunia feels that
with the ongoing stress in the public-sector banks due to
mounting bad debt, their appetite to lend, especially in
rural areas, is only going to deteriorate. This will provide
stronger push to NBFCs like Lendingkart to increase
presence pan India. “Our projected disbursement for
financial year 2018 is around `800 crore and we plan
to disburse around `2,100 crore in financial year 2019,”
Lunia added.
[email protected]Name: Diwakara GS, 31
Location: Bangalore
Company name: D Smart
Business: Business of supplying, installing,
repairing home appliances, like air
conditioning, television, etc.Loan size: Availed `4,50,000 for
business expansion.4,70,000 SMEs reached out,
Lendingkart has disbursed over
20,000 loans to over 13,000 SMEsLendingkart raised debt
funding from SBI, Kotak
Mahindra and Yes BankIt caters to 23 diverse sectors; apparels,
computers, mobile and accessories,
FMCG, textile and industry suppliesMonthly revenue of majority
customers range between
`50,000 to `10 lakhLendingkart has reached out to
950 cities across 29 states and
7 Union TerritoriesIn a
NutSheLLPhoto: DeePak g Pawarhttp://www.outlookmoney.com March 2018 Outlook Money 81