MSME Lending

The Aditya Birla Group's financial services arm will use the capital raised from promoters and IFC to strengthen lending businesses and accelerate digital growth initiatives

A report by the Economic Advisory Council to the Prime Minister has flagged sharp regional imbalances in priority sector lending and called for a more equity-focused PSL framework

Indian banks relied heavily on MSMEs to drive credit growth in FY26, and were bracing for stress in the segment in FY27 due to the West Asia situation

India's small business credit portfolio remains resilient at ₹47.8 lakh crore, though growth moderated amid a higher base, even as smaller-ticket loans gained share

MSMEs see higher working capital drawdowns as West Asia conflict strains cash flows, with delayed receivables and rising costs expected to impact portfolios in coming quarters

Mandating such a shift may not solve the problem. Ignoring information gaps and banning collateral risks weakening the financial system and could reduce, not expand, credit supply

DEG and Citi have extended a $76 million co-financing facility to Shriram Finance to expand lending to MSMEs, smallholder farmers, women borrowers, and electric vehicle buyers

Bank credit rises 14.6% year-on-year in fortnight ended January 31, while deposit growth remains firm at 12.5%, RBI data show

Union Budget 2026 stays focused on fiscal prudence, targets a 4.3% deficit, sustains ₹12.2 trillion capex, and backs rare earths, freight corridors, waterways and data centres, writes Madan Sabnavis

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