Mahindra & Mahindra Financial Services Limited (MMFSL), a Non-Banking Financial Corporation (NBFC), has revealed a partnership with Lendingkart, a fintech firm. This collaborative effort aims to offer business loans to the Small & Medium Enterprise (SME) sector, enhancing Mahindra Finance’s product portfolio diversification strategy. The initiative underscores the company's commitment to promoting financial inclusion among small and medium enterprises, as stated in a press release.
This nationwide collaboration signifies Mahindra Finance's entry into the co-lending arena for the SME sector, as part of the Mahindra and Mahindra Group, employing an 80:20 structure. Under this arrangement, Lendingkart will utilize its tech platform, Lendingkart 2gthr. Serving as the company's flagship end-to-end (E2E) platform, Lendingkart 2gthr will facilitate the entire customer journey, encompassing origination, underwriting, disbursals, and collections.
Raul Rebello, MD&CEO - Designate, Mahindra Finance, said, "The SME sector is one of the fastest growing sectors, with a need for timely access to credit. Through this co-lending initiative, our collective objective is to transform credit decisioning, boost assesibility and create financial agility in the SME space. Together with Lendingkart, we aim to provide comprehensive and competitive financial solutions to the SME sector in our journey to be a responsible financial solution partner to emerging India”.
Harshvardhan Lunia, Founder & CEO, Lendingkart Group, mentioned, "MSMEs are the backbone of the Indian economy, there’s no doubt about that. Over the last few years, Lendingkart has consistently pushed the envelope in digital lending and empowered MSMEs pan-India. We are proud of partnering with thousands of business owners every single day by making access to credit fast, transparent, and unbiased. This co-lending partnership with Mahindra Finance is a testament to our focus on fostering collaboration in the Indian financial ecosystem to better serve the underserved MSMEs and serve the national mission of financial inclusion. Together with Mahindra Finance, we will leverage our knowledge and expertise to simplify finance for an emerging India".
The company added: “Through this initiative, SME businesses will be able to capitalize on Mahindra Finance’s hyperlocal schemes and Lendingkart’s expertise as an MSME finance specialist thus creating a synergy that will positively impact SMEs seeking timely financial support. Recognizing the dynamic nature of the financial landscape, the collaboration is envisioned as a long-term commitment, with the initial agreement spanning across three years".