Quotes from Twitter chat on Recalibrating MSME Finance to unlock growth potential

“Trade & cashflow lending models are the only ones appropriate for MSME’s below 10 cr t/o. Given that PCR will soon be live and e-invoicing will be pervasive, these models will have lot of public data (with consent) without having to rely on private data”
Ramaswamy Iyer Founder and CEO

“Top Need is for *Flexibility* with existing solutions for #MSMEs and not so much of a new product as such. For example, letting business decide if they want to buy a secondhand machine. Many lenders will only give loan for a new machine”
Hardika Shah, Founder & CEO KinaraCapital

“Distributors & suppliers give the most amount of credit to MSMEs (without it being counted as formal credit) 🙂 “Proximity to Trust” – is the anchor of models that have so far worked: eg. Supplier / distributors of large brands”
Mekin Maheshwari (Founder Udhyam Learning Foundation Co- Founder GAME)

“Most large FIs say that they take sectoral nuances into account, but most products remain vanilla in nature. Some innovation has definitely happened in product side but accessibility remains low ”
Abhimanyu Dhamija (VP-Business (financial services), Khata Book)