Canara Bank, Lendingkart tie up to offer up to ₹10 lakh loan to MSMEs online
Premium- The loans will be provided with fast turnaround time for approvals powered by “Lendingkart 2gthr” platform using ‘zero touch’ technology
Fintech company Lendingkart on Tuesday announced that it has entered into a co-lending partnership with Canara Bank to provide low-cost business loans of up to ₹10 lakh to micro, small and medium enterprises (MSMEs) across the country. The loans will be provided with fast turnaround time for approvals powered by “Lendingkart 2gthr" platform using ‘zero touch’ technology, Lendingkart said in its statement.
Canara Bank said through this alliance it aims to broaden its reach to support MSME borrowers to enhance financial inclusion under the Reserve Bank’s Priority Sector initiative.
"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," said A. Manimekhalai, executive director, Canara Bank.
Lendingkart said it 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," it added in its official statement.
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“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 to the growth of the Indian economy," said Harshvardhan Lunia, co-founder and CEO, Lendingkart.
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