MSME Lending

Scheme will also serve women entrepreneurs and help economic growth, says state government

The increase in lending to the MSME sector reflects robust credit demand from small businesses as well as improving credit access supported by the increasing digital lending initiatives

Bankers highlighted the need for consent-based APIs and structured data to improve MSME lending, addressing working capital, technology, and credit guarantee challenges

Credit growth to small and medium enterprises is outpacing all other sectors, but the test of asset quality lies ahead

With assets under management of over ₹12 billion, Infinity offers loans to entrepreneurs and small business owners in India's smaller cities, supporting them in achieving their growth goals

TVS Capital, Lok Capital and others back newly licensed NBFC to expand credit access for underserved MSMEs in semi-urban and rural India, valuing firm at ₹900 crore

By expanding the list of beneficiary businesses, the scheme is increasing support for micro and small enterprises and helping India in achieving its ambition to become a $5 trillion economy

Government think tank NITI Aayog has pitched for relaxing eligibility criteria for schemes that offer subsidies for capital and interest on loans at the state level to enhance competitiveness of micro, small and medium enterprises (MSMEs) in the country. The Aayog in a report titled 'Enhancing MSMEs Competitiveness in India' also suggested making skill development initiatives easily accessible, especially for MSMEs that face challenges due to their location or size. "At the state level, lowering eligibility barriers for schemes that offer subsidies for capital and interest on loans will better address the financing needs of MSMEs throughout their lifecycle," the report said. Given their success in providing credit to MSMEs, especially in remote areas, it said non-banking financial companies (NBFCs) need to scale up their operations. The report suggested that a crucial step in this process is for SIDBI to play a significant role by providing funding to help NBFCs improve their ...

MSME-focused fintech Progcap on Tuesday said it has launched a programme to offer collateral-free loans of up to Rs 10 lakh to women-led small and medium enterprises in the next three years. The fintech, which is backed by Peak XV (previously Sequoia Capital India), Google and Tiger Capital, among others, seeks to empower 10,000 women-led MSMEs in semi-urban and rural India by FY27, Progcap said in a statement. "Progcap has introduced ProgShakti Development Program, wherein women entrepreneurs can access loans of up to Rs 10 lakh and get certified through capacity-building knowledge sessions helping them grow their businesses," it said. Aligned with the government's 'Viksit Bharat' vision for 2047 and the goal of increasing women's workforce participation to 70 per cent, Progcap's initiative offers customised credit to women-led enterprises and eliminates the need for a male co-applicant while assessing the creditworthiness, Progcap said. Founded by Pallavi Shrivastava and Himanshu

Current allocation may not be enough to design and implement support schemes

The launch of a new credit guarantee scheme for the MSME sector covering loans up to Rs 100 crore will help attract more investments, promote manufacturing and boost the country's exports, exporters say. They said that the exporting community's lack of adequate financing for capital investments has long been a challenge for MSMEs, restricting their ability to scale and compete in global markets. On January 29, the government launched the Mutual Credit Guarantee Scheme for MSMEs (MCGS- MSME) with an aim to provide 60 per cent guarantee coverage by National Credit Guarantee Trustee Company Ltd (NCGTC) to Member Lending Institutions (MLIs) for credit facility of up to Rs 100 crore sanctioned to eligible MSMEs for purchase of equipment/machinery, the finance ministry said in a statement. For availing the scheme, the MSMEs should fulfil certain conditions which include that the borrower should be an MSME with valid Udyam Registration Number, loan amount guaranteed shall not exceed Rs 100

Union Finance Minister Nirmala Sitharaman on Saturday said that the Rs 100 crore credit guarantee scheme for MSMEs which was announced in the budget this year will soon be placed before the Union Cabinet for approval. Highlighting the five announcements made in this budget for MSMEs she said, "the introduction of a special credit guarantee corpus to help MSMEs will be very helpful during the time of distress...." "The Rs 100 crore credit guarantee scheme will soon be placed before the cabinet. Immediately after getting approval from cabinet, the scheme that will provide guarantee through MSME ministry and banks will be implemented," the Union Finance Minister said, while attending the National MSME Cluster Outreach Programme here. "The grievance, which has been there for a very long time, is that the MSMEs can get working capital from banks but they don't get term loans, loans for plant and machinery. Now the guarantee will be provided under the scheme," she explained. Further stat

The finance ministry in the forthcoming Union Budget needs to double the loan limit to Rs 20 lakh under the MUDRA Yojana, and expand the credit guarantee cover for unsecured loans for MSMEs from Rs 2 crore to Rs 5 crore. MSMEs also want incentives from the government to help them sell products globally. Finance Minister Nirmala Sitharaman will present the Union Budget for the current fiscal on July 23 in the Lok Sabha. On expectations from the Budget, Navin Saini, chief business officer (Retail & MSME), Arka Fincap said the government will continue its agenda to provide a strong foundation for MSMEs, bolstering their growth. "To achieve this, they should consider increasing the loan limit of the Pradhan Mantri MUDRA Yojana (PMMY) scheme from Rs 10 lakh to Rs 20 lakh and expanding the credit guarantee cover for unsecured loans for MSMEs from Rs 2 crore to Rs 5 crore. "These measures will provide MSMEs with greater access to necessary financial resources, enabling them to thrive and

In India, shift to private credit, Nishu said, started before the Covid era, driven by regulatory reforms including the Insolvency and Bankruptcy code, Real Estate Regulatory Authority (RERA) Act etc.

The bank will focus more on growing its retail and micro, small and medium enterprises (MSME) portfolio

Paytm said that it would continue to collaborate and add banks and NBFCs as lending partners for its loan distribution business

Products of the entities that completed the test phase were evaluated based on mutually agreed test scenarios and expected outcomes

Religare provides loans to small and mid-sized businesses and also has health insurance and broking services units

The government has accepted more than 10,000 claims of MSMEs involving refunds worth Rs 256 crore under a dispute resolution scheme Vivad se Vishwas-I. Under the scheme, MSMEs could claim a refund of 95 per cent of performance or bid security and liquidated damages forfeited by government departments and public sector entities during the COVID-19 period. The scheme, announced in 2023-24 Budget, opened on April 17 and the last date for submission of claims for relief on the GeM portal was July 31. "In a major relief to the Micro, Small and Medium Enterprises (MSMEs), various Ministries/Departments of the Government of India have accepted more than 10,000 claims of MSMEs under Vivad se Vishwas -I scheme aimed at providing relief to MSMEs for the COVID-19 Pandemic period. This has led to grant of more than Rs 256 crore to MSMEs and increased flow of bank credit through freeing up of guarantees," a finance ministry statement said. The highest relief of Rs 116.47 crore has been granted

The housing segment showed a steady growth at 14.3 per cent in April 2023 against 13.7 per cent, RBI said