The Non-Banking Financial Corporation (NBFC) Mahindra & Mahindra Financial Services Limited (MMFSL) established a partnership with the fintech startup Lendingkart on Monday. According to a press release, this co-lending partnership will support financial inclusion for small and medium-sized businesses and expand Mahindra Finance's product diversification strategy by offering business loans to the SME sector.
With this nationwide partnership, Mahindra Finance—a division of the Mahindra and Mahindra Group—makes its unique entry into the co-lending market for the SME sector under an 80:20 structure. Lendingkart will use its digital platform, Lendingkart 2gthr, for this purpose, the statement reads. The company's primary E2Eplatform, Lendingkart 2gthr, will facilitate every step of the customer journey, including origination, underwriting, disbursals, and collections.
Mahindra Finance's MD&CEO-designate, Raul Rebello, stated: "The SME sector is one of the fastest expanding, and it need rapid access to finance. Our joint goal is to improve accessibility, foster financial agility, and revolutionize credit decisioning in the SME market through our co-lending program. As we work to become a responsible financial solution partner to growing India, we together with Lendingkart hope to offer comprehensive and competitive financial solutions to the SME sector.
Lendingkart has been empowering MSMEs throughout India and pushing the boundaries of digital lending for the past few years. "There is no denying that MSMEs are the backbone of the Indian economy," said Harshvardhan Lunia, Founder & CEO of Lendingkart Group. We take great pride in our daily partnerships with thousands of company owners, providing quick, clear, and fair finance access. Our emphasis on promoting cooperation in the Indian financial ecosystem to better serve the neglected MSMEs and support the country's financial inclusion agenda is demonstrated by our co-lending agreement with Mahindra Finance. We will pool our knowledge and experience with Mahindra financing to streamline financing for a developing India.
The statement from the firm said, "This initiative will enable SME businesses to leverage Lendingkart's experience as an MSME finance specialist and Mahindra Finance's hyperlocal schemes, resulting in a synergy that will positively impact SMEs seeking timely financial support." Acknowledging the ever-changing financial landscape, the partnership is intended to be a long-term endeavor, with the first agreement being three years in duration.
