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Reviving MSMEs: how cash flow-based lending and account aggregation can unlock their true potential

Unorganised businesses and MSMEs face the acute problem of little or no access to credit. Worse, a prolonged economic slowdown, followed by the debilitating effects of Covid-19, has crippled this already cash-strapped segment, which accounts for more than a quarter of the country’s GDP. Cash flow-based lending could be the key to reviving it.
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3 Sep 2020 5 Mins Read 0 comment
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By MEDICI Global India is home to more than 63 million micro, small, and medium enterprises (MSMEs). Although only 10% of these firms have access to formal credit, the sector contributes more than 28% of the country’s GDP*. These numbers underline the critical role MSMEs play in fuelling the country’s economic growth and the dire need to include more
marketplace for MSMEs by connecting all these parts and bringing the entire ecosystem across lenders, borrowers, LSPs, and private and public innovators together. *Report of the expert committee on MSMEs under the chairmanship of UK Sinha This article was originally published on MEDICI Global and has been republished as part of an editorial partnership.
By MEDICI Global India is home to more than 63 million micro, small, and medium enterprises (MSMEs). Although only 10% of these firms have access to formal credit, the sector contributes more than 28% of the country’s GDP*. These numbers underline the critical role MSMEs play in fuelling the country’s economic growth and the dire need to include more marketplace for MSMEs by connecting all these parts and bringing the entire ecosystem across lenders, borrowers, LSPs, and private and public innovators together. *Report of the expert committee on MSMEs under the chairmanship of UK Sinha This article was originally published on MEDICI Global and has been republished as part of an editorial partnership.

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