Lendingkart offers Attractive Interest Rates for SME Loans

Small and medium enterprises in India are growing at an exponential rate. The Indian Government has launched several schemes for their benefit. Furthermore, the introduction of GST and online portals has increased the ease of doing business in India. You can now quickly gain approvals for new projects or much needed expansions. However, to get things started you will need ready capital for investment, and at Lendingkart Finance, we do just that for you. Lendingkart offers attractive interest rates in the range of 18-27% for short term SME loans.

With Lendingkart’s unsecured business loans, you can get small-ticket short term investment on-the-go. We have made the process completely online so that you can monitor the progress of your application in real-time. Lendingkart loans are approved for businesses having profitability in 2 previous financial years with a minimum annual turnover of Rs. 6,00,000. Other factors such as applicant’s age, income tax returns, and business stability are also used in determining the loan eligibility.

Easily Calculate Your EMIs

We offer a business loan EMI calculator which you can use to get an idea of EMI amounts you will be paying. The EMI is calculated based on the Lendingkart interest rate offered to you, the loan amount and tenure. For example, the EMI payable for a one lakh rupee loan, taken for 12-months at 18% interest per annum, will be Rs. 9,168. In similar scenario, if the interest rate is 27% p.a., then the EMI will be Rs. 9,602.

Attractive interest rates for SME loans. Find yours through the EMI Calculator

 

Needless to say, the higher the amount of your loan, the higher the amount of your EMI. The EMI calculator also helps you in budgeting and adjusting your finances to meet your EMI payment schedules.

The benefits of taking a business loan from Lendingkart

There are several benefits offered by Lendingkart in comparison to banks providing similar loans.

Lendingkart Interest Rates:

Applying for an SME Loan

Terms

Attractive Interest Rate 18% to 27%*
One time Processing Charge 2% of the Loan amount
Loan Duration Minimum: 1 month, Maximum: 1 year
Loan Amount (min to max.) Rs. 50,000 to 1 Crore
Part Prepayment Charges NA
Pre-closure Charges Nil**

*based on your business’s health and credit score

**Pre-closures are only allowed after the first EMI has been paid in full

We have a proprietary method of calculating interest rates which evaluates your loan application using advanced analytics. By enabling technical inputs and outputs we have made the process of calculating interest rates faster and more accurate. The attractive interest rates are calculated by factoring in several things listed below and are different for every partner SME.

  1. Loan Amount: The amount that you apply for, pending approval, counts towards deciding the interest rate. Generally, the higher the amount of loan, higher the possibility of a lesser interest rate from Lendingkart.
  2. CIBIL Ranking: If your CIBIL score and history are good, the interest rate we charge will be lower and vice versa.
  3. Balance Sheet: If you are earning good margins, we will take that in consideration while deciding interest rates on your loan.
  4. Age of Business: For long running enterprises, we offer special discounted SME loan rates.

Business Friendly Loan Approval and Pre-closure Charges

We do not believe in charging extraneous charges and fees from our customers. That’s why we have one of the friendliest pre-closure policies – there are no pre-closure charges. After paying the first EMI, you can prepay the full loan amount, anytime. Added with the benefit of attractive interest rates, it is a great way to finance any short term business requirement.

Also, we only charge 2% of the loan amount plus service tax as processing fee. It’s a one-time fee which you don’t have to pay if you choose to reapply for the same loan amount upon closing.

Minimum documentation and turnaround time

When applying for a business loan with Lendingkart, you have to submit only a handful of documents. And we process every loan application within 3 days of document verification.

Documents required by us are:

  1. Address proof (Aadhar Card, Voter ID, Bank Statement, Proof of registration, etc.)
  2. Identity Proof (Passport, Aadhar Card, Driving Licence, PAN, etc.)
  3. Proof of Business (PAN, GST Registration, Trade License, Registration Certificate issued by RBI or SEBI).
  4. Copy of PAN card and Income Tax Returns for last 24 months.
  5. Bank Statement of last 12 months.

To know more about applying for a business loan with Lendingkart, head over to our website and sign-up for a free account.

Credit Scores – Part 1: The What, Who and When

Introduction

“Sorry, we won’t be able to process your loan application because your credit score is too low.” As a person who has availed loans before, I can testify to how much this single statement can hurt. Especially when there is a pressing need of funds, and you know that the low credit scores are mostly your own folly. Banks and non-banking financial institutions do not take any pleasure in harming your credit score on purpose. Delays in payments, improper follow-up, willful defaults are just some of the culprits that lead to a bad credit score and report.

We’ll help you know what your credit report is, how to read and understand it and some tips on improving your credit score faster.

Credit Bureau, Credit Scores and Credit Reports at a Glance

I’m sure most of you would be familiar with the term ‘CIBIL Score’. CIBIL is one of the four institutions in India that collect and compile credit information of individuals and business entities from across the nation. Along with Credit Information Bureau of India Limited (CIBIL), Equifax, Experian and CRIF High Mark are the Credit Information Companies that deal with credit data in India. CIBIL is by far the oldest and the most popular, having its origins in the year 2000. Experian has been in existence since 2006 and achieved a license of operation in 2010. Highmark and Equifax also received operating licenses in 2010.

Lending, be it for personal, business or residential purposes, is always laden with risk. Credit Information Companies provide the data to lenders that helps them take a rather calculated risk instead of a blind one. Based on how a business has been performing financially or how a person’s bank records are, credit scores are given by these agencies within a range specific to each of them. A small comparative chart of the same is shown below –

CIBIL Equifax Experian CRIF High Mark
Score Range 300 to 900.
900 the best
300 the worst
1 to 999.
999 the best
1 the worst
300 to 900.
900 the best
300 the worst
300 to 850.
850 the best
300 the worst
Good Credit Score Threshold 700 and above 650 and above 700 and above 720 and above
Poor Credit Score Threshold 600 and below 500 and below 600 and below 640 and below

 

The good and bad thresholds are the trends that are followed by most banks and/or NBFCs when deciding to issue loans or credit cards. There might be institutions who can define their own set of credit scores that they consider good or bad. This is just a general idea. You might notice there are gaps of quite some values in between the good and bad score thresholds. These are the popular ‘gray’ areas.

If your credit score falls in these gray areas, it is mostly up to the lender whether to approve or reject a loan or credit card. There are some people for whom the CIBIL TransUnion score would be in negative or in single units. In such cases, mostly the person has never had any loan or credit facility ever. For them, most lenders do quite a few background checks, but if everything is fine, loans and credit card approvals are not far away.

Credit scores are just a summary whereas credit reports are the more important reports that you should be keeping an eye out for. These reports deal with extensive information and need to be read carefully. Every loan you have ever availed, and every credit card you have used is listed in here, along with the payment delays, delinquency status and status of the credit instrument. Sometimes, there might be inconsistencies in these records and based on the same, you can even file a dispute with the respective credit bureau. Based on the validity of the dispute claim, they will get in touch with your lender and sort out the problems in your report.

Each bureau takes a certain amount of time to generate your report. Every report generated comes with an associated amount of fees. The following table gives a general overview of the rates and time taken by these bureaus for generating credit reports. Additional services offered by the bureaus is also mentioned in the table –

CIBIL Equifax Experian CRIF High Mark
Services

For Individuals –

CIBIL TransUnion Score

Credit Information Report

Market Insights

For Companies –

Portfolio Review Reports

CIBIL Company Credit Information Report

CIBIL Bureau Analyzer

Extra services –

Portfolio Management

Fraud Prevention

Customer Acquisition

Custom Solutions

For Individuals –

Equifax Credit Information Report

Equifax Alerts

Equifax Portfolio Review

Equifax Risk Score

For Companies –

Credit Risk and Fraud Management

Portfolio Management

Industry Diagnostics

 

For Individuals –

Experian Credit Information Report

For Companies –

Customer Acquisition

Collection and Money Recovery

Customer Management

Data and Analytics

Customer Targeting and Engagement

 

For Individuals –

CRIF High Mark Credit Report

Portfolio Management

Alerts

Geo Analytics Consulting

For Companies –

CRIF High Mark Credit Report

PERFORM Score

Portfolio Management

Extra services –

Verification

Data Quality Management

Credit Assist

ETA for Credit Report 5 minutes for CIR

7 days for Detailed Report

10 days 5 minutes for paid CIR

3 days for free CIR

5 minutes for paid CIR

3 days for free CIR

Fees

Free once a year INR 500
INR 800
INR 1200
based on subscription

INR 400 Free

INR 399 for detailed report instantly

Free

INR 399 for detailed report instantly

 

When to Use What

Normally, getting a credit report and score from any one bureau should work for any individual or company. If you are running a small business, it is advisable to get separate reports for yourself and your business from at least two bureaus every 6 months. These reports will also have varying credit scores depending upon the usage and repayment of your loans/credit cards and EMIs/bills respectively.

That way, you can easily keep track of what problem areas are in the reports that can be fixed. Often, sometimes rectifying incorrect data in the reported information can go a long way in increasing credit scores. In all the bureaus, you will need at least one government-issued identity proof and acceptable address proof to raise a dispute. If you have multiple credit cards or multiple loan accounts, it can be a bit tough to keep up with the process of CRIF High Mark. Experian and CIBIL do not require as many multiple checks to show you the credit report and the corresponding credit scores.

With a basic overview of credit scores here, we are presenting you some links where you can access an annual free credit report from some of these bureaus –

  1. Free CIBIL Report (Once a year) – https://www.cibil.com/freecibilscore
  2. Paid Equifax Score and Credit Report – http://www.equifax.co.in/consumer/forms/credit_report/en_in
  3. Free Experian Report – http://www.experian.in/consumer/experian-free-credit-report.html
  4. CRIF High Mark Report – https://cir.crifhighmark.com/Inquiry/B2C/B2CommercialPortal.action

Did you find something in your reports that you don’t remember? While you can raise a dispute any time, it is better to be safe in the future. Perfios is a money manager that can track any financial account for you and is free for individual users and can include small businessmen effectively. Do check it out!

If there’s something in your credit report that you don’t quite understand, read our next article to get an insight into how to read the more complex reports from bureaus.

Small Business Loans – The Working Capital Angle

Ever since I started off in a retail lending team at HDFC Bank and even now, as a decision-maker in one of the leading fintech lenders of the nation, I have always been asked by clients about the kind of business loan that would be the best for every situation. Simply put, there is no single loan that comes with a ‘one-size-fits-all’ feature. But when it comes to which business loan can be used in many situations, if not all, I could lead you through my insights and let you decide for yourself why working capital loans offer the best advantages. The current market scenario is rife with financial options to help in the smooth running of any business, small or big. These options could include multiple banks and NBFCs or even new age fintech firms like us, the Lendingkart Group. Though the sources are a dime a dozen, availing business finance through official channels is always bound by regulations and people resort to borrowing from friends and family or the local moneylender. Continue reading

Financial Falooda for Thought

You have a business and you hail from a family that has been selling and buying products since the independence of India in 1947. Or you could be one of those people who didn’t like taking orders from someone and you headed out to find your calling as an entrepreneur. Well, you could also be someone who took up business because anything else didn’t make sense. Or maybe you were just curious how the life of an entrepreneur was and you decided to step into the shoes of one. You are of course the best judge of it all. Indeed, you could be neither of the above but know someone who is. Irrespective of that, this post is one of the many that will follow which will give you an insight into how businesses operate, what to keep in mind when taking some crucial choices, what financial decisions could possibly be better for you. Always keep in mind though, the facts in this blog are corroborated by research and the opinions expressed are of people just like you. Continue reading