Lendingkart CEO Calls for Innovative Approaches to Tackle Credit Crunch in SME Sector 23


In a recent interview with CNBC-TV18, Lendingkart CEO Harshvardhan Lunia shed light on the significant credit gap faced by micro and small businesses in India. This article delves into Lunia’s insights, emphasizing the need for alternative credit assessment methods and Lendingkart’s role in providing essential financial support.

The Growing Credit Demand in SME Space

lending cash to Small business CEO

Lunia highlighted the substantial growth of Lendingkart, especially during the festive season. The CEO attributed the surge in credit demand to a more celebratory Diwali season, showcasing substantial performance improvement. Disbursements reached close to ₹6,000 crore, a notable increase from the previous year’s ₹4,000 crore.

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Tier-II and Lower-Tier Cities Driving Demand

The demand surge is particularly pronounced in tier-II and lower-tier cities, indicating a growing need for financial support in these regions. This trend reflects positive regional performance and escalating business needs, contributing to Lendingkart’s success.

Lendingkart’s Growth Trajectory

A man showing the credit score of small business CEO

Looking ahead, Lunia outlined Lendingkart’s ambitious growth trajectory. The company aims for disbursements of around ₹9,000 crore in the upcoming year. Despite challenges in consumer credit, Lunia expressed confidence in the resilience of the MSME sector, foreseeing it to contribute 50% of India’s GDP growth in the next three years.

Prudent Lending Practices Amid Economic Challenges

Emphasizing the importance of prudent lending practices, Lunia highlighted the significance of considering economic conditions and borrower performance. This approach ensures sustainable growth and financial stability for both Lendingkart and its clients.

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India’s SME Sector Contribution

A man and women giving cash as credit to small business

India’s SME sector, as the world’s largest, plays a pivotal role in contributing nearly a trillion dollars to the economy. Constituting about 36% of India’s total manufacturing output, this sector is projected to contribute over $2 trillion to the Indian economy, creating 50 million additional jobs by 2024.

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Bhavna Suresh and 10Club’s Strategic Move

In addition to Lendingkart, Bhavna Suresh, Founder of 10club, discussed strategic plans for the next phase of growth. The launch of 10ClubHomes, consolidating all acquired businesses into a single brand, aims to disrupt the $30 billion home and kitchen space market.

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Lendingkart CEO Calls for Innovative Approaches

Addressing the substantial credit gap, Lunia stressed the need for innovative approaches to assess the creditworthiness of micro and small businesses. As a fintech company, Lendingkart aims to build a digital journey for customers, reaching them through alternative credit models.


Q: How did Lendingkart perform during the festive season? A: Lendingkart reported substantial growth, with disbursements reaching close to ₹6,000 crore, compared to ₹4,000 crore the previous year.

Q: What is the significance of tier-II and lower-tier cities in Lendingkart’s success? A: These cities drive a prominent demand surge, indicating positive regional performance and growing business needs.

Q: What is Lendingkart’s growth trajectory for the upcoming year? A: Lendingkart aims for disbursements of around ₹9,000 crore, emphasizing the importance of prudent lending practices.

Q: How does Lendingkart address challenges in consumer credit? A: Lendingkart expresses confidence in the resilience of the MSME sector, anticipating it to contribute 50% of India’s GDP growth in the next three years.

Q: What role does Bhavna Suresh play in the growth narrative? A: Bhavna Suresh, Founder of 10club, discusses strategic plans, including the launch of 10ClubHomes, aiming to disrupt the home and kitchen space market.

Q: How does Lendingkart plan to tackle the credit gap in micro and small businesses? A: Lendingkart aims to explore alternative methods for assessing creditworthiness, building a digital customer journey through fintech innovations.


In conclusion, Lendingkart’s CEO Harshvardhan Lunia’s insights provide a comprehensive understanding of the challenges and opportunities in India’s SME sector. The company’s focus on innovation and prudent practices positions it as a key player in addressing the credit crunch and fostering sustainable economic growth.

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