Paytm announced its partnership with Lendingkart, a leading online platform for credit evaluation for small and medium enterprises (SMEs), offering collateral free business loans to SMEs. The initiative is a part of Paytm's commitment to provide easy access to finance for merchants and SMEs.
The credit evaluation process from Lendingkart makes loan disbursement happen in just 3 days at fair interest rates. Their innovative use of technology further simplifies the lending process, enhances the speed, provides price transparency, improves customer experience and reduces borrowing cost for businesses of all sizes.
Paytm is looking at expanding its seller base, with a concentrated focus on SME development. “Our commitment is to provide our merchants with simple, seamless selling experience on our platform without having to worry about issues like arranging funds for operational purposes. The partnership with Lendingkart is an effort in that direction“, Renu Satti, Vice President, Paytm said.
Lendingkart utilizes Big Data analytics and other proxies to derive credit comfort and assess the creditworthiness of the small business owners wherein most of the credit risk analysis is done digitally so that loans can be disbursed in less than 48 hours even in the semi-urban and tier-2 cities.
Speaking on the alliance, Harshvardhan Lunia, CEO, Lendingkart said, “The benefits we provide at Lendingkart allow the entrepreneurs to focus on building their businesses instead of worrying about gaps in their cash-flows. At Lendingkart, we have attempted to simplify the process of loans disbursement and made capital accessible to everyone via our completely online application process”.
Access to finance is perhaps one of the biggest pain points for small businesses in India. Without funds, they cannot adopt new technologies nor can they explore new geographies. Further, they cannot compete in global markets or even strike business linkages with larger organizations.