MSME share to manufacturing output declines

July 07, 2019

“The budget has underlined the significant role that NBFCs play in capital formation of the MSME segment, and that NBFCs should continue to get funding from the banks. Since the liquidity crisis, the banks have become more conservative and were wary of lending to NBFCs or providing interest rate reductions. Enhancing credit guarantee for portfolio purchases will definitely improve the flow of funds to healthy NBFCs with a good quality asset pool. This will go a long way to help NBFCs successfully address the ‘missing middle’ gap and provide unsecured lending to millions of MSMEs that struggle constantly to get capital without property collateral,” Hardika Shah, founder & CEO, Kinara Capital said commenting on the Union Budget.