7 ways to bridge the MSME credit gap by banks, other lending institutions
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India has over 64 million MSMEs contributing over 30% of GDP and 44% of exports; MSME credit penetration in India is only 14%, compared to 50% in the US and 37% in China; existing credit gap exceeds $170 billion, with working capital needs projected to reach over $570 billion by 2027; Priority Sector Lending (PSL) mandates banks to allocate at least 40% of Adjusted Net Bank Credit to priority sectors; the MSME Emergency Credit Line Guarantee Scheme disbursed over ₹3 lakh crore to support businesses during Covid-19; a dedicated bank for MSMEs is under consideration; Open Credit Enablement Network (OCEN) aims to enhance credit access for MSMEs; collaboration among banks, NBFCs, and fintechs is essential to bridge the credit gap.
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https://www.financialexpress.com/business/sme/7-ways-to-bridge-the-msme-credit-gap-by-banks-other-lending-institutions/3598063/
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