Aug 27, 2021By: Kritti Bhalla
The year 2020 has been a watershed moment for the Indian micro, small and medium enterprise (MSMEs), which has accelerated their growth in digital transformation.
Several Indian private and state-owned companies have started to take notice of this segment over the last year and a half, and have rolled out several financial programmes to support these businesses.
Lending company Indifi has partnered with Facebook to offer collateral-free digital loans to SMBs across 200 cities. These loans would range anywhere from ₹5 lakh to ₹50 lakh at a 17-20 percent interest rate.
Last month, fintech company InCred partnered with Amazon to offer working capital of upto ₹50 lakh to sellers and retailers listed on the ecommerce platform.
MSME-focused lending platform FlexiLoans plans to disburse loans to over 50,000 small businesses listed on Google Pay in the next 12 months.
The US Agency for International Development (USAID) and the US International Development Finance Corporation (DFC) will jointly sponsor $50 million loan portfolio guarantee to Kotak Mahindra Bank to support women entrepreneurs and MSMEs.
The Indian government’s e-commerce platform, Government e-Marketplace (GeM), launched a mobile app called ‘Gem Sahay’ to offer business loans to sellers.
BSE-listed U GRO, Bank of Baroda will offer loans ranging between ₹50 lakh to ₹2.5 crore to small businesses at an interest rate starting from 8 percent. The loan will be for a tenure of 120 months.
After approving a $750 million financing plan for pandemic-hit MSMEs last year, the World Bank further approved a $500 million plan to finance Indian small businesses this year. The latest plan aims to improve performance of 5.55 lakh MSMEs.
YES Bank launched a ‘YES MSME’ initiative earlier this year to offer speedy and easy access of funds to small businesses in India.
Earlier in May, e-commerce giant Flipkart expanded the benefits of its Flipkart Growth Capital to raise credit from less than ₹5 lakh to ₹5 crore. It offers loans within 24 hours at a 9 percent interest rate.