Quite often it happens that you have an excellent business idea but you cannot take it forward because of lack of funds. In most of the cases, the challenges that startup founders have to deal with while setting up their new businesses are linked with funding. And, this is perhaps the primary reason because of which many brilliant ideas cannot even reach the execution stage. To ease this pain of startup and small business owners, fintech startup Lendingkart started its journey in the year 2014. This online lending startup has made the process of procuring small business loans in India quite easy and hassle free. By providing fast and short-term business loans to small and medium-sized businesses (SMEs), Lendingkart is also contributing towards India’s economic growth.
Lendingkart, started in 2014, is the brainchild of Harshvardhan Lunia and Mukul Sachan. While Harshvardhan studied at ISB Hyderabad and worked in the banking industry, Mukul, on the other hand, is an IIM Bangalore alumnus and was in charge of different portfolios of finance at several organizations.
Lunia and Sachan were early to understand the challenges that SMEs face in obtaining business loans. With their comprehensive exposure in the field of banking and finance, they realized that small business loans between Rs. 50,000 and Rs. 10 lakhs were not tapped by the banking institutions and NBFCs of the country. As a result of which many small business houses were suffering from lack of funds. Lunia and Sachan decided to fill up this gap and started offering loans of up to Rs. 10 lakh to the SMEs.
Advantages of borrowing small business loans from Lendingkart
A borrower borrowing money from Lendingkart enjoys many other advantages over banking institutions and other NBFCs.
The application process for a business loan is very simple. It can be completed online on the Lendingkart portal in just 15 minutes.
A business loan application on Lendingkart requires minimum documentation. A borrower need not have to disclose his/her collateral or net worth details.
Once a business loan gets approved, the concerned borrower can get the money within 3 business days.
Unlike the banks and other Indian NBFCs, Lendingkart does not focus on a borrower’s old financial records to assess the credit risk profile of a potential customer. It focuses on a potential borrower’s current year’s cash flows and business growth.
“The objective is to make capital funds available at finger tips so that entrepreneurs can focus on business instead of worrying about gaps in their cash-flows.”
Lendingkart is based mostly on data analytics algorithms developed by its technical wing. The startup has its presence in Ahmedabad, Bangalore and Mumbai. It, however, serves SMEs of all locations in India.
Till date, the fintech startup is believed to have disbursed more than 7,000 small business loans to small and medium-sized enterprises in over 450 cities. The company is hopeful of disbursing more than 10,000 business loans by June 2017. They are also targeting to serve SMEs of at least 800 Indian cities and towns by this year end.