Digital lending company Lendingkart Technologies said it has touched disbursement of 1,00,000-plus loans of more than Rs 5,000 crore to over 89,000 MSMEs.
Harshvardhan Lunia, co-founder and CEO of Lendingkart, said 80 percent of its borrowers are educated (12+3) like BA, BCom, BSc and running a business like coaching class, a computer academy, mobile phone store, or mobile phone repair shop, among other professions.
Lunia said, "We are the largest footprint NBFC in the country and typically what we have done is targeted the underserved self-employed segment where the typical loan size is of Rs 4-5 lakh and which a lot of people do not want to serve is what we are giving."
In India, there are 60 million SMEs and a lot of them do not have access to funding, he told CNBC-TV18.
"When we started catering to a young market, people who were in 33-34 average age, young entrepreneurs, all of these guys were banked and they have their banking accounts and they do transactions."
"So we realised that there are 1.1 crore small businesses, which are very similar and which fit our bill and assuming an average ticket size of Rs 5 lakh loan that all of them want as working capital it basically turns up to Rs 5.5 lakh crore market that we are trying to serve."
He said: "NPA is part of our business, which we have to take. Whenever you give money to someone it is presumed that people won't give you some portion of the money back to you."
There will be a few people who will go through their own difficulties and they might not be able to repay the money back and that is part of the business risk. "Last 3-4 years we have had NPAs in the range of 3-4 percent."