+
Fintech Firms Aim to Close $530 Billion Credit Gap for MSMEs
ECONOMY & POLICY

Fintech Firms Aim to Close $530 Billion Credit Gap for MSMEs

India's fintech industry is urging the government to introduce measures in the upcoming budget that would improve credit accessibility for Micro, Small, and Medium Enterprises (MSMEs). Despite recent policy initiatives, a significant credit gap persists in the sector. According to the Reserve Bank of India, the total finance demand for MSMEs stands at $1,955 billion, with $1,544 billion specifically required in debt financing. Currently, only $289 billion of this demand is being met by banks, leaving a $530 billion gap that fintech companies and Non-Banking Financial Companies (NBFCs) could help fill.

The introduction of the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) has provided some relief, but experts suggest simplifying eligibility criteria for NBFCs to address the gap more effectively. Additionally, the government's Samadhaan portal shows significant unpaid dues, with over 40,000 pending applications, further exacerbating liquidity issues for MSMEs.

India's fintech industry is urging the government to introduce measures in the upcoming budget that would improve credit accessibility for Micro, Small, and Medium Enterprises (MSMEs). Despite recent policy initiatives, a significant credit gap persists in the sector. According to the Reserve Bank of India, the total finance demand for MSMEs stands at $1,955 billion, with $1,544 billion specifically required in debt financing. Currently, only $289 billion of this demand is being met by banks, leaving a $530 billion gap that fintech companies and Non-Banking Financial Companies (NBFCs) could help fill. The introduction of the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) has provided some relief, but experts suggest simplifying eligibility criteria for NBFCs to address the gap more effectively. Additionally, the government's Samadhaan portal shows significant unpaid dues, with over 40,000 pending applications, further exacerbating liquidity issues for MSMEs.

Next Story
Infrastructure Energy

SBESL begins biogas production at Gorakhpur plant

Solapur Bioenergy Systems Limited (SBESL), a subsidiary of Organic Recycling Systems Ltd. (ORSL), has commenced the generation and dispatch of Compressed Biogas (CBG) from the Indian Oil Corporation Ltd. (IOCL) plant at Gorakhpur, Uttar Pradesh. The milestone strengthens India’s green energy momentum and directly supports the Government of India’s SATAT (Sustainable Alternative Towards Affordable Transportation) initiative.The Gorakhpur facility represents a crucial step in converting agricultural waste into sustainable and commercially viable clean fuel. It delivers long-term environmenta..

Next Story
Real Estate

Arisinfra bags Rs 1 billion contracts in North Bengaluru

Arisinfra Solutions Limited, a leading tech-enabled supply and services network for India’s construction and real estate sectors, has secured new integrated supply-and-services contracts worth Rs 1 billion. The mandates, awarded by Arsh Greens and Eternity Group, span plotted developments, villas, and apartments, reinforcing Arisinfra’s position as a preferred partner for India’s real estate and construction ecosystem.With these additions, Arisinfra’s North Bengaluru portfolio now covers over 2.45 million sq. ft. of RERA carpet area, representing a Gross Development Value (GDV) of arou..

Next Story
Infrastructure Energy

SEPC Q1 profit doubles to Rs 165 million

SEPC Limited, a leading Engineering, Procurement, and Construction (EPC) company with a diversified presence across water and municipal services, roads, industrial infrastructure, and mining, has announced its unaudited financial results for the first quarter of FY26. The company reported total income of Rs 2.04 billion in Q1 FY26, compared with Rs 1.78 billion in the same period last year, marking a 14.4 per cent increase. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) stood at Rs 298 million, up 11.9 per cent year-on-year, with an EBITDA margin of 14.6 per ce..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?