In a bid to make the financial ecosystem for Indian MSMEs more inclusive, fintech company, Lendingkart has partnered with the financial services firm Cholamandalam Investment and Finance company Ltd (Chola) to disburse loans to India’s small and medium businesses.
Moreover, this partnership is also important because both the entities plan to penetrate into Tier II and III cities and empower rural MSMEs by disbursing atleast Rs 250 crore worth of loans every year.
While Chola’s expansive customer base will make it easier to reach out to a vast number of MSMEs, the loans will be primarily distributed via Lendingkart’s tech platforms called Xlr8 and 2gthr.
Commenting on this development, Harshvardhan Lunia, CEO and Founder of Lendingkart, said, “We are putting our efforts together to reach out to each market in India and assist entrepreneurs who are determined to create something of their own. In our journey of promoting financial inclusion in the country, these meaningful partnerships will become our backbone and assist us with required liquidity support, while Lendingkart will leverage its network and technology to further expand the services to small businesses in India.”
The MSME sector contributes about 30 per cent to India’s GDP, and 45 per cent to India’s exports and is also the second largest employer of workforce after agriculture, as per data shared by the Micro, Small, and Medium Enterprises Ministry. Prime Minister Narendra Modi has often highlighted that this sector will play a key role in helping India become a $5 trillion economy.
Lendingkart was founded in 2014 by Harshvardhan Lunia. The Ahmedabad-based company has disbursed 1,40,000 loans to more than 200K MSMEs in more than 4,000 cities and towns across India since its inception.
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