+
MSCB Chief Urges Shift in MSME Lending Approach
ECONOMY & POLICY

MSCB Chief Urges Shift in MSME Lending Approach

Vidyadhar Anaskar, Chairman of the Maharashtra State Cooperative Bank (MSCB), has called for a fundamental shift in the way cooperative banks lend to micro, small and medium enterprises (MSMEs). Speaking at the 2025 Banking and MSME Sector Conclave in Pune, Anaskar advocated for a transition from collateral-based lending to project-focused financing models.

Highlighting current flaws in the lending system, Anaskar criticised the widespread requirement for personal property as collateral, arguing that it contradicts the very spirit of MSME support. He stressed the need to realign banking practices to better serve India’s entrepreneurial base.

The event, jointly organised by Sahakar Bharati and the Global Indian Origin Network, brought together key stakeholders to discuss MSME financing challenges and sectoral reforms. Dinesh Gandhi, Chairman of Sahakar Bharati, underscored the sector's importance, noting that it sustains around 110 million families and plays a vital role in employment generation.

Anaskar also pointed to the housing segment as a lucrative opportunity for cooperative banks due to its stable repayment prospects and collateral reliability. He contrasted this with commercial real estate, which remains outside the Reserve Bank of India's priority sector classification due to its dual financing model involving both banks and homebuyers.

He called for better collaboration with auditors and accounting professionals to streamline the project appraisal and financing process.

Adding to the discussion, Indraneel Chitale, Managing Partner of Chitale Bandhu Mithaiwale, highlighted the bureaucratic hurdles that impede first-generation entrepreneurs. He emphasised that excessive paperwork in the loan application process diverts focus from business development, urging banks to reduce administrative red tape to help enterprises grow efficiently.

The conclave reflected a growing consensus on the need for financial reforms to foster a more inclusive and supportive MSME ecosystem in India.

Vidyadhar Anaskar, Chairman of the Maharashtra State Cooperative Bank (MSCB), has called for a fundamental shift in the way cooperative banks lend to micro, small and medium enterprises (MSMEs). Speaking at the 2025 Banking and MSME Sector Conclave in Pune, Anaskar advocated for a transition from collateral-based lending to project-focused financing models.Highlighting current flaws in the lending system, Anaskar criticised the widespread requirement for personal property as collateral, arguing that it contradicts the very spirit of MSME support. He stressed the need to realign banking practices to better serve India’s entrepreneurial base.The event, jointly organised by Sahakar Bharati and the Global Indian Origin Network, brought together key stakeholders to discuss MSME financing challenges and sectoral reforms. Dinesh Gandhi, Chairman of Sahakar Bharati, underscored the sector's importance, noting that it sustains around 110 million families and plays a vital role in employment generation.Anaskar also pointed to the housing segment as a lucrative opportunity for cooperative banks due to its stable repayment prospects and collateral reliability. He contrasted this with commercial real estate, which remains outside the Reserve Bank of India's priority sector classification due to its dual financing model involving both banks and homebuyers.He called for better collaboration with auditors and accounting professionals to streamline the project appraisal and financing process.Adding to the discussion, Indraneel Chitale, Managing Partner of Chitale Bandhu Mithaiwale, highlighted the bureaucratic hurdles that impede first-generation entrepreneurs. He emphasised that excessive paperwork in the loan application process diverts focus from business development, urging banks to reduce administrative red tape to help enterprises grow efficiently.The conclave reflected a growing consensus on the need for financial reforms to foster a more inclusive and supportive MSME ecosystem in India.

Next Story
Infrastructure Energy

UERC Rejects Pleas Over Cancelled 200 MW Solar Awards

The Uttarakhand Electricity Regulatory Commission (UERC) has rejected review petitions filed by 12 solar developers against the cancellation of Letters of Award (LoAs) issued under the state’s 200 MW Solar Programme.The scheme, launched by the Uttarakhand Renewable Energy Development Agency (UREDA) under the 2013 solar policy, aimed to help Uttarakhand Power Corporation Ltd (UPCL) meet its renewable purchase obligations through tariff-based competitive bidding.The projects—classified under the Type I category—had original commissioning deadlines in 2019–2020, later extended multiple ti..

Next Story
Infrastructure Energy

Solarium Wins Rs 266 Million Rooftop Solar Orders

Solarium Green Energy has secured two significant work orders valued at a combined Rs 266 million for rooftop solar projects across various locations in the Northeastern States, under the Ministry of Home Affairs.The first order, worth approximately Rs 129.8 million, was awarded by NTPC Vidyut Vyapar Nigam Limited (NVVN) for the development of a 3,319 kW rooftop solar photovoltaic (PV) project. This was tendered under the NVVN’s “Selection and Discovery of L1 Rates for Rate Contract for EPC of Grid Connected Rooftop Solar PV Projects (51–200 kW) across India”. The project is scheduled ..

Next Story
Real Estate

Omaxe Secures Rs 5 Billion From Oaktree For Expansion

Omaxe Group has raised Rs 5 billion in funding from Oaktree Capital Management LP, a global investment firm specialising in alternative investments, to fuel the development of ongoing projects and support future growth plans.In a regulatory filing dated 28 July, the company confirmed that the funds will support construction and infrastructure development across key markets, including New Chandigarh, Lucknow, Ludhiana, and Faridabad. The capital will also be directed towards flagship projects such as Omaxe State in Dwarka, an upcoming integrated township in Amritsar, and a new township in Indor..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?