Lendingkart joins hands with Paytm for collateral free business loans to SMEs, sellers

To bring ease of financial assistance to small and medium enterprises (SMEs) and merchants across the country, LendingKart on Thursday said it has tied up with Paytm to offer collateral free loans through the mobile payments wallet.

The company aims at simplifying the credit evaluation process, through efficient use of technology, making loan disbursement in three days at fair interest rates, it said in a statement.

"The benefits we provide at Lendingkart allow the entrepreneurs to focus on building their businesses instead of worrying about gaps in their cash-flows," Lendingkart Chief Executive Harshvardhan Lunia said.

"Through this initiative, we have attempted to simplify the process of loan disbursement and made capital accessible to everyone via our completely online application process," he added.

Lendingkart further said, it aims at serving loan demand in the semi-urban and tier-II cities as well, through its simplified process.

Paytm said it is looking forward to expand its seller base, through this partnership with a concentrated focus on SME development.

"Our commitment is to provide our merchants with a simple, seamless selling experience on our platform without having to worry about issues like arranging funds for operational purposes," Renu Satti, VP Business Paytm said.

"I believe that through this partnership with Lendingkart, we will move towards that direction and bring more sellers on board," Satti added.