Banks, NBFCs may scale up MSME lending with this one-stop digital tool offering real-time decisioning

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November 9, 2020 5:55 PM

Credit and Finance for MSMEs: Banks, NBFCs may scale up MSME lending with this one-stop digital tool offering real-time decisioning

credit growth, deposit growth, consumer spending, festive seasonThe government had put in Rs 80,000 crore in bank recapitalisation in FY18, Rs 1.08 lakh crore in FY19 and Rs 70,000 crore in FY20.

Credit and Finance for MSMEs: MSME lender Lendingkart Technologies will now enable its financial institution partners including banks and non-banking financial companies (NBFCs) to get on-board its platform within two weeks and disburse unsecured loans to MSMEs through its co-lending software-as-a-service (SaaS) service Lendingkart 2gthr. Launched on Monday, the new platform would enable co-lenders to initiate processing loan applications with “end-to-end funnel visibility and control,” the company said. Co-lenders would also be able to review and approve loans through a custom dashboard providing information to enable real-time decision making. “The platform enables these financial institutions to leverage the origination, underwriting, and most importantly in the new normal, digital delivery of loan. It has also been equipped with portfolio monitoring capabilities for partners for them to utilize for their internal reporting purpose, to see how MSMEs are emerging as strong supporters of economic growth,” Harshvardhan Lunia, Co-Founder & MD, Lendingkart Technologies told Financial Express Online.

Lendingkart has partnered with banks and NBFCs in a risk-sharing partnership to help them reach out and lend to MSMEs located remotely. “MSMEs will digitally fill up the loan application, post which LendingKart’s proprietary Credit Scoring Engine and the best-fit algorithm will match the MSME borrower with the right lender on the LendingKart 2gthr platform,” added Lunia. The company said in a statement that the SaaS platform helps banks, NBFCs scale their lending operations with all information available to them in real-time.

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Lendingkart’s FY20 disbursement had improved around 85 per cent to about 53,000 loans involving Rs 2,500 crore from FY19. Its Assets Under Management (AUM) for the year were around Rs 2,400 crores up 80 per cent from the preceding financial year. Founded in 2014, Lendingkart is backed by investors including Fullerton Financial Holding, Bertelsmann, Mayfield India, Saama Capital, Sistema Asia, India Quotient, and others. It has secured around Rs 1,050 crores in funding so far. The company enables lending between Rs 50,000 till Rs 1 crore for a period of one to 36 months and has so far disbursed over 1 lakh loans to more than 90,000 MSMEs. “The target for the disbursals under co-lending relationship with various financial institutions is around Rs 800-1000 crore over the next four quarters,” said Lunia.

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