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59-minute loans: Leapfrogging MSME lending through technology

The criticality of credit flow to the MSMEs is borne out of its contribution to employment and inclusive growth

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A survey found that job losses in the MSME sector has been about 32 per cent

Alok Misra
Though the term financial inclusion is of recent origin, as an idea it has been at the fulcrum of India’s development policy. Milestones like nationalisation of banks, priority-sector lending, promotion of microfinance, interest subvention for agriculture in the past and establishment of MUDRA and the successful implementation of PMJDY in last four years amply demonstrate the policy intent.
 
Within this broad ambit of inclusion, acceleration of credit flow to Micro and Small Enterprises (MSME) has occupied policy centre stage in last few years. The criticality of credit flow to the MSMEs is borne out of its contribution to employment