Ahmedabad based digital lending platform, Lendingkart has partnered with one of India’s leading credit information companies, TransUnion CIBIL to ease the process of acquiring loans for SMEs.
With this partnership, self-employed professionals and small and medium-sized business enterprises will be able to access loans offered by Lendingkart Finance on the TransUnion marketplace platform.
CIBIL was introduced in 2007 which gives credit score for banking and various financial institutions all over the country. In 2016, TransUnion acquired 82% stake in CIBIL, post which the company was renamed to TransUnion CIBIL. CIBIL manages credit files of over 600 million individuals and 32 million business organizations. It works with over 2,600 members including all leading banks, financial institutions, non-banking financial companies and housing finance companies. CIBIL manages one of the largest repositories of credit information in the whole world.
In order to access the credit risk of micro, small, and medium enterprises (MSMEs), TransUnion CIBIL uses an MSME ranking scheme, which gives MSMEs a credit risk rank. By using machine learning algorithms, it predicts the probability of an MSME becoming an NPA (Non-Profit Asset) in the next 12 months. The results are based on the credit history data.
In 2014, Harshvardhan Lunia and Mukul Sachan founded Lendingkart Finance. Since then, the company has disbursed loans to over 3,00,000 SMEs, 10,000 borrowers and around 850 cities in the country. Lendingkart offers easy and speedy loans with a negligible amount of paperwork. With its efficient platform, Lendingkart disburses loans in just 72 hours of loan application.
The company is also aiming to start a hybrid lending model in the next six to nine months. It will soon start co-lending with banks and other financial firms through a marketplace platform.
Numerous MSMEs use TransUnion’s platform to check their CIBIL score. Their tie-up with Lendingkart Finance will facilitate easy credit access to micro, small, and medium enterprises.