Bank of Maharashtra, Lendingkart partner to offer small-ticket MSME loans
- IBEF
- January 27, 2022
Lendingkart, a fintech company, announced on Tuesday that it has teamed up with the Bank of Maharashtra to co-lend business loans to micro, small, and medium businesses (MSME). Lendingkart hopes to make affordable finance available to micro, small, and medium businesses (MSME) borrowers at their doorstep with this agreement, which will be enabled by the 'zero touch' technology platform Lendingkart '2gthr.'
'2gthr,' according to Lendingkart, allows banks and NBFCs to onboard and disburse unsecured business loans up to Rs. 10 lakh (US$ 13356) to MSME borrowers across the country in real-time. Co-lenders can also use the platform to underwrite company loan applications using the 'cred8' cash-flow-based evaluation process, which includes high-end dashboards that show end-to-end funnel visibility on loans at different stages.
“We aim to enhance financial inclusion to complement Reserve Bank of India's vision and enable MSME borrowers to achieve higher growth in their respective sectors," said Harshvardhan Lunia, CEO and co-founder, Lendingkart. “Bank of Maharashtra will support Lendingkart in addressing the credit gaps existing in the financial services market and together we aim to solve and contribute to the GDP growth of the country. We are well prepared to leverage this partnership to achieve common objectives to serve the MSME segment in India," Lunia added.
Bank of Maharashtra will also use Lendingkart's origination platform 'xlr8' to distribute MSME loans obtained through multi-channel strategies in support of its mission of financial inclusion under this agreement.
“The partnership under the co-lending arrangement will result in significant disbursement under priority sector lending and it will make available funds to the ultimate beneficiary at an affordable cost. Bank of Maharashtra is fostering such arrangements and adopting digital channels to facilitate seamless credit delivery. This partnership will pave the path for sustainable growth of bank’s MSME credit portfolio. The customers will also be benefited by cost effective loans in unserved and underserved areas," said A S Rajeev, managing director and CEO, Bank of Maharashtra.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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