Microfinance is the Key to Solving Financial Problems of MSME

Alternative Perspectives

Microfinance Institutions (MFIs) for MSMEs in India

The MSME sector accounts for about 40% of exports and almost a third of national output, and it is critical to address loss of revenue so as to purposefully avoid closure of units and damage to livelihoods. An estimated 6.3 crore MSME units employ 11 crore persons across the country, and it is only fitting that the sector is provided credit guarantees and interest subventions to survive the lockdown. Read More

Grassroot Initiatives

Microfinance is the Key to Solving Financial Problems of MSME: Cashpor Microfinance
New types of Microfinance Institutions (MFIs) are being launched in India which concentrate exclusively in the field of microfinance and adopt products, policies and procedures which can enable them to deliver these services in a profitable manner. The number of such MFIs is estimated to be less than a hundred. These credit institutions have larger canvas and microcredit is one among the many services provided. The MFIs adopt diverse methodologies in reaching the poor.
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Data and Trends

IN THE NEWS

USAID, DFC join hands with Kotak Mahindra Bank to support MSMEs

This comes against the backdrop of the covid-19 pandemic, a statement from the US embassy said adding that the partnership will help MSMEs impacted by the pandemic to easily access loans to rebuild and scale up their businesses. Read More

COVID second wave brings MFI and small NBFC sector to its knees

The impact of the second Covid wave has again raised concerns over the recovery of the microfinance (MFI) and the small NBFC sector, which was already battling the elevated credit stress and declining AUM in FY21.
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SIDBI collaborates with Assam to strengthen ties for development of MSMEs

The project specific moderately priced loan assistance under SCDF will be extended to the state government for upgrading various existing MSME clusters and developing new industrial infrastructural facilities. Read More

Bandhan Bank will focus on home loan, MSME and gold loan in future: CS Ghosh

Microfinance is a very standard model and India is a big country. There is no growth driver needed for that. But we are likely to drive the growth of the housing loan vertical. It accounts for 24% now and in future we would like this segment to account for 30% of the total book. Read More

EVENT

What is the Future of Microfinance? | 22 March 2021

The COVID-19 crisis is forcing traditional microfinance institutions to adapt to a very different way of working and many MFIs are experimenting with using more digital means to enable them to work with clients while social distancing. This is providing an opportunity for traditional MFIs to rethink their approach to technology and is opening up a conversation about the resilience of the traditional microfinance model in the digital age. Read More

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