Bridging the Credit gap for MSMEs: Gaps in access and solutions to bridge the gap

• by Anant Jayant Natu
• Jan 27, 2021
• 1 min
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The report focuses on gaps in access to credit for MSMEs in India and presents supply-side solutions to bridge this gap.

This report estimates the credit gap in the MSME sector as it emerges from the long shadow of COVID-19 and presents solutions to bridge this gap. It presents the current state of financing to MSMEs, including the role of initiatives like TReDS and GeM in meeting the short-term financing gap. It also touches upon supply-side challenges that MSMEs face in accessing credit. The report then offers some broad recommendations and some technology-specific ones with a focus on financial architecture and digital public infrastructure plan for faster diffusion of cash-flow-based lending and deeper access to credit.