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Digital lending to MSMEs may rise up to 15-fold to Rs 7 trn by 2023: Report

India's 60 million MSMEs are broadly defined as businesses with annual revenue up to Rs 2.5 billion

Press Trust of India  |  New Delhi 

Personal loans account for 96% of new bank loans during FY18: RBI data

to in India is expected to rise 10 to 15 times by 2023 to Rs 6-7 trillion ($80-100 billion) in annual disbursements, according to a report.    

The study has been released by Omidyar Network, the impact investing firm established by Pierre Omidyar, the founder of eBay, and The Boston Consulting Group.

"has the potential to propel the productivity of India's to global leadership," said Roopa Kudva, partner and managing director, India at Omidyar Network.

"As of 2018, most of the credit demand for $600 billion is being met through informal sources. And therefore, the report indicates that India stands on the cusp of a watershed moment and can serve as a case study for other nations to elevate the role of in the economy."
 


India's 60 million MSMEs are broadly defined as businesses with annual revenue up to Rs 2.5 billion make a significant contribution to its employment and its gross domestic product (GDP). 

"With almost 60 per cent of MSMEs borrowing informally today, is set for disruption with massive growth in formalisation and digitisation," said Saurabh Tripathi, senior partner and director and Asia-Pacific leader, Financial Institutions Practice at BCG.

"Easier and cheaper credit through has the potential to trigger a virtuous cycle for formalisation: up to 85per cent of MSMEs could be formal by 2023," he added.
 

The report was released yesterday. 

First Published: Thu, November 22 2018. 21:30 IST
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