Lendingkart announces strategic co-lending partnership with Canara Ban
Lendingkart Group, India’s leading fintech platform, announced today that it has entered into a first of its kind co-lending partnership with Canara Bank, the third largest nationalized bank in India. This partnership will bring forth low-cost business loans to MSMEs across India with fast turnaround time for loan approvals powered by “Lendingkart 2gthr” platform using ‘zero touch’ technology. Under this arrangement, Canara Bank aims to broaden its reach to support MSME borrowers to enhance financial inclusion under Reserve Banks’s Priority Sector initiative.
Lendingkart aims to deploy its cash-flow based underwriting model using zero-touch loan journey, to deliver same day approvals for business loans to MSME borrowers across the nation. Canara Bank will leverage Lendingkart platforms ‘xlr8’ to originate and distribute MSME loans and ‘cred8’ to underwrite these loans.
Commenting on the partnership, Co-founder & CEO at Lendingkart, Mr. Harshvardhan Lunia said, “we are pleased to announce this co-lending partnership with the country’s top-tier bank to provide pan India loans to MSME borrowers. Lendingkart will use its might for onboarding pan India MSME borrowers and shall be the face to the customer through the loan life cycle. This partnership will connect the underserved MSME borrowers with the top-notch bank to contribute growth of Indian economy”
Ms. A. Manimekhalai, Executive Director at Canara Bank stated, "We are always on the lookout for ways to improve the flow of credit to the unserved/underserved sector of the economy at an affordable cost. As a step forward, we are pleased to enter into a Co-Lending agreement with M/s Lendingkart Finance Limited to cater to the credit needs of MSMEs falling under the MUDRA category. Further, the loans will be originated and sanctioned end to end leveraged through the digital platform which will offer hassle free access to the MSMEs under the gloomy COVID19 scenario”
Lendingkart has been at the forefront in leveraging various digital tools such as video KYC, participating with India stack, e-NACH, e-sign, and others. This has tremendously enhanced Lendingkart’s capability to deliver their offering to the remotest locations in the country. Lendingkart extends its services pan India with no branch presence. It is supported by a world-class technology infrastructure that allows zero physical touchpoints, customer-centric and transparent loan process for borrowers as well as lending partners. Lendingkart’s underwriting model is not limited to a traditional financial basis, and instead adopts a holistic approach of evaluating alternate customer data e.g. bank data and GST data to estimate the customer creditworthiness. The underwriting is based on its proprietary machine-learning model working on close to 5,000+ variables for each loan, which has resulted in strong portfolio performance.