Innovative Financing Techniques for MSMEs in India

Alternative Perspectives

IPL for MSMEs – Innovative Policies & Lending

The Union Cabinet recently approved the change in the definition of MSME from one based on investment in plant and machinery to one based on sales turnover. While this is awaiting Parliament approval, it is a step in the right direction to improve the ‘Ease of Doing Business’. Read More

Grassroot Initiatives

Innovative Finance Solutions for Micro, Small & Medium Enterprises (MSMEs) in India: Case of Aye Finance
Micro, Small, and Media Enterprises (MSMEs) are considered the engines of growth in developing economies across the world. According to World Bank, there are an estimated 50 million MSMEs, which employ about 100 million people across India. This sector accounts for 37 percent of the country's GDP. MSMEs face a huge gap when it comes to accessing credit; more than 90 percent have not accessed any kind of credit. There are many financial institutions that bridge the small business credit gap through innovative lending. One such example is that of Aye Finance. They focus on specific industry clusters, like small-scale manufacturing, trading, and services businesses, which cannot access capital from mainstream financial institutions in India.
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Data and Trends

IN THE NEWS

Revitalizing MSME financing: COVID and beyond

Although the pandemic has affected firms of all sizes, but SMEs have been more vulnerable. Read More

Indian Bank, IIT Bombay join hands to fund startups, MSMEs

Under the MoU, SINE will identify the startups and MSMEs based on their credentials and past experience and will refer the list of such members who require financial assistance to the Indian Bank. Read More

Blended finance has the potential to address the climate financing gap – But the current grant-capital-return mix is standing in the way

Green finance is finally having its moment. $491 billion in sustainable bonds were issued in 2020, a jump from $200 billion in 2018, as reported by Environmental Finance. Read More

Innovative climate finance solutions for MSMEs on digital platform SCALE-UP Lab

To support climate-smart small and medium-sized enterprises (SMEs) through the development of tailored financial mechanisms, SEED Practitioner Labs Climate Finance is going to organize SCALE-UP LAB on 25 November 2020. Read More

UPCOMING EVENT

MED MSMEs Webinar "Access to Alternative and Innovative Finance Comparative Study: Outcomes and Recommendations"
20 September 2021

A raised awareness and effectiveness of the EU Initiative for Financial Inclusion (EUIFI) and support provided under the MED MSMEs Programme. The MED MSMEs Programme leverages, and adds value to, other bilateral or donor interventions. Its main intervention mode for promoting better economic governance is through action-oriented policy dialogue, while the intervention level focuses on the macro or policy level. Read More

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