A Vyapar Credit Card for MSMEs

Government data indicates that less than 40 per cent of MSMEs borrow from the formal financial system


Jayant Sinha
The Standing Committee on Finance has prepared a multi-year road map to strengthen credit flows to the micro, small and medium enterprises or the MSME sector. Currently, more than 60 per cent of India’s 6 crore-plus MSMEs are not borrowing from the formal financial sector, leading to a credit gap of Rs 20-25 trillion. Moreover, MSMEs are borrowing at high rates and have access to only limited financial products. We need to roll out a Vyapar Credit Card (VCC) that can deliver cash-flow based lending to every MSME —from the footpath hawker to the saree weaver. Just like the Kisan
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First Published: May 25 2022 | 12:26 AM IST

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