- Dedicated bank for MSMEs to boost credit access
- Seems like the govt is thinking of becoming one of the direct competitors to MSME lenders (Banks, NBFCs, SFBs). Already they do it through SBI and other PSUs but now thinking of a dedicated lending institution for MSMEs only.
- Limited credit history, insufficient collateral, lack of knowledge about government support, and high borrowing costs compli- cate access to funding for MSMEs. – Lending rates are also in the minds.
- As recommended by the Parliamentary Committee on Finance, the comprehensive approaches in the US, EU, and China serve as valuable models for India to enhance its financing landscape for MSMEs, improve credit access, and make these enterprises globally competitive. (By competitive, they mean low lending rates as in US, EU and China – see full article)
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