Lendingkart, a digital lending fintech start-up in working capital space, plans to launch ‘credit intelligence services’ for banks from April, helping them evaluate credit worthiness of self-employed small- and micro-enterprises based on their cash flows, said its co-founder and Managing Director, Harshvardhan Lunia.
Lendingkart will assign a probability of default score, give out a risk premium and suggest the amount that banks could lend to such small and micro enterprises, especially those in Tier-2 and Tier-3 cities, Lunia told BusinessLine.
Banks could always go with their own underwriting model and use the score provided by Lendingkart as an additional tool to evaluate the borrower, he said.
Lendingkart is the only fintech in the country that has built an algorithm-based and cash flow based decision engine, he said.
The use of the cash flow based decision engine would obviate the need for institutions and banks to rely on financial statements and income tax returns (ITRs) to evaluate a borrower.
