A time to handhold: Lenders must support MSMEs as tariff woes rise

As MSME tariff woes increase, lenders have to work closely with smaller industries, even as demand for a lifeline grows, reports Raghu Mohan

In November last year, Swaminathan J urged bankers to work collaboratively with small businesses “to build trust, enhance credit discipline, and ensure that they are equipped with the financial tools needed to succeed”.

 

The Reserve Bank of India’s (RBI’s) deputy governor was speaking at the CEO Forum of the Federation of Telangana Chambers of Commerce and Industry. The topic was ‘MSMEs — Bridging the credit gap through improving confidence in lending’.

 

That time is well upon us now. Micro, small and medium enterprises or MSMEs are coping with US’ tariff related woes, and a closer engagement between lenders and the