Working capital finance provider Lendingkart Finance Ltd on Wednesday announced it has raised Rs 25 crore from State Bank of India.
The funds will enable the fintech start-up in growing its loan book by offering credit to small and medium enterprises (SMEs) in close to 950 cities of the country.
So far, the company has disbursed close to 20,000 loans to 12,000 businesses across 23 industrial sectors. The fresh infusion of funds will help the start-up expand its reach to over 950 cities of the country, mostly the smaller ones, where institutional finance to meet the day-to-day requirement of funds is not easily available.
The company uses special algorithm tools to determine the creditworthiness of the businessmen.
Banks have a set of requirements to determine the creditworthiness, which many small businesses are not able to meet.
However, they have enough ability to repay the loans.
