Online lending platform Lendingkart today announced that it has tied up with ethnic products e- commerce marketplace Craftsvilla to facilitate easy and collateral-free working capital loans to the portal's sellers.
"Small businesses and sellers on online marketplaces struggle to get financing these days to keep up with the escalating demands and competitive markets," Harshvardhan Lunia, Co-Founder and CEO, Lendingkart said in a statement here.
"By partnering with Craftsvilla, we will help its sellers obtain loans with limited credit history, thereby bridging gaps in their business cash-flows," he added.
Mumbai-based Craftsvilla has recently launched 'seller financing' program which has been providing a financing aid platform to their sellers.
The pilot financing program will be extended to the regular sellers on Craftsvilla's platform.
This strategic alliance will offer them an opportunity to grow fast and build loyalty with the brand as most sellers sell on multiple platforms, the statement said.
"With this association, Lendingkart will have its own parameters to select sellers for financing based on their customer ratings, sales growth and credit score. We want our merchants to be sufficiently financed so that they are able to concentrate only on scaling up the supply as per growing demand of customers," Manoj Gupta, Co-Founder Craftsvilla said.
Most of the credit risk analysis at Lendingkart's affiliated NBFCs is done digitally so that loans can be disbursed in less than 72 hours even in semi-urban and tier-2 cities, the statement said.
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