Credit and Finance for MSMEs: Digital MSME lender Lendingkart on Tuesday announced a partnership with Amazon India for providing performance-based working capital credit to marketplace sellers. Lendingkart said the credit to Amazon India’s sellers would be available with minimal documentation and flexible repayment options. Sellers will have to provide their contact information to complete the loan application process. The credit underwriting for loans extended to sellers will be done by Lendingkart which claimed to have a database of 5 lakh MSMEs with 3.5 billion data points.
“Lendingkart has reached and extended credit to over 11,000 pin-codes across more than 4,000 cities & towns which is the highest in India. Our success with MSME lending in India aligns well with Amazon’s efforts to digitally enable small and medium businesses,” said Manish Bhatia, President, Lendingkart in a statement.
The company had hit the $1-billion loan disbursement mark to 1.3 lakh MSMEs in October last year since it received its non-banking financial company (NBFC) license in 2015. Lendingkart provides short-term collateral-free working capital loans with little or no credit history available of borrowers. The loan size ranges from Rs 50,000 to Rs 2 crores with a repayment period of one to 36 months.
“The mission of Amazon.in’s seller lending program is to enable seamless access to credit for our sellers with transparent policies and low costs. This program enables marketplace sellers across India to avail affordable credit (term loans, working capital loans) seamlessly to meet their working capital requirements,” said Vikas Bansal – Director, Amazon Pay India.
In December last year, Amazon had announced crossing the 10-lakh seller mark in India from 100 sellers in 2013 when the company launched operations in the country. Importantly, more than 90 per cent of the sellers on Amazon.in are small and medium enterprises and over half of these sellers on the marketplace come from tier 2 and tier 3 cities.
Lendingkart currently competes with Indifi, Aye Finance, Flexiloans, Capital Float, NeoGrowth Credit, U GRO Capital, Kinara Capital, and more, in the MSME lending space. India’s digital lending market is likely to grow from $75 billion in 2018 to $270 billion in 2022 and $350 billion in 2023, as per Statista.