Fintechs and NBFCs can solve credit issues for SMEs and MSMEs, says Vikas Singh of Sugmya Finance

livemint.com:

MintGenie, Singh said that fintechs and NBFCs can play a considerable role in solving the credit accessibility and creditworthiness of SMEs and MSMEs.India’s micro, small, and medium enterprises (MSME) sector, the second largest in the world after China, is poised for significant growth in the future. The landscape for MSMEs is being shaped by various key trends in 2024, presenting both opportunities and challenges in a rapidly evolving business environment.

Some of the dominant trends in the sector include:Increased adoption of digital technology: MSMEs are increasingly leveraging digital technology to penetrate rural India and reach previously untapped markets.Scaling e-commerce: As online shopping continues to grow, many SMEs and MSMEs continue to take advantage of e-commerce platforms to access new markets and expand their reach.Industry collaboration and partnerships: Collaborative efforts between SMEs, large organizations, and industry players drive innovation, knowledge-sharing, market expansion, and mutually beneficial relationships.Financial inclusion: In 2024, the emphasis for governments and financial institutions will be on improving financial inclusion for MSMEs. This could include streamlining loan procedures and encouraging the utilization of alternative funding options such as peer-to-peer lending and microloans.Fintechs and NBFCs can play a considerable role in solving the credit accessibility and creditworthiness of small and medium-sized enterprises (SMEs) and MSMEs.