MSME Financing in India: Making it Easy, Accessible & Affordable

The contribution of Micro, Small and Medium Enterprises (MSMEs) to Gross Domestic Product (GDP), job creation, and balanced economic development is well-established. There are more than 55 million MSME enterprises in India, contributing to around one-third of India’s GDP and almost 43% of our exports. However, the lack of adequate, timely, and affordable access to credit has remained the biggest challenge for these enterprises to grow.

It is estimated that around 40% to 65% of MSMEs in emerging markets are either underfunded or not funded in the first place, by the formal financial sector. There have been various efforts and policy measures across developing economies and emerging markets, particularly focused on establishing robust financial infrastructure, and innovative financing mechanisms for MSMEs. Credit Guarantee Scheme ...

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