Did you know there are around 64 million micro, small, and medium enterprises (MSMEs) in India? Additionally, MSMEs contribute around 30% of the total GDP and account for 31% of the country’s workforce, highlighting their indispensable role in India’s economic growth in recent years. Yet, MSME credit penetration in India is only 14%, which begs […]
Can Co-Lending Be the Catalyst for the Resurgence of India’s MSME Sector?
The Micro, Small, and Medium Enterprises (MSME) sector contributes significantly to India’s growth trajectory, provides resilience to the economy, and generates a substantial number of jobs. A total of 633.9 lakh MSMEs employed 93,94,957 people in the financial year 2022, as per IBEF. The sector has played a vital role in generating employment in rural […]
Banking On Co-Lending To Serve Credit Demand: A Scaling Strategy For NBFCs
Co-Lending Model (CLM) is still in its infancy in India. RBI devised this specific lending model to improve credit availability to the underserved and unserved categories of the economy. Generally, these segments are isolated from mainstream banking facilities due to their geographical or demographical characteristics. They include low and medium-income categories, Micro, Small, and Medium […]
How Can Co-lending Benefit Banks, Customers, and NBFCs?
The co-lending model, introduced by the Reserve Bank Of India (RBI) in 2018, is a mechanism where banks and non-banks join hands to provide credit to the priority sector. The co-lending arrangement allows NBFCs (Non-Bank Financial Companies) which operate in deeper geographies and lend to the MSME Sector (Micro, Small and Medium Enterprises), LIG (Low-Income […]
How Finezza’s Co-lending LMS Can Benefit Your Co-lending Process
Loan syndication by banks has always existed for large business loans. The real challenge is in the small and medium-sized enterprises (SMEs) market, which represents a significant share of the digital lending landscape in India. A conservative estimate puts this market at a whopping $300-$400 billion by 2025! The Indian finance industry has long used […]
Is Co-lending Changing the Credit Landscape in India?
The concept of co-lending has existed in the banking, financial services, and insurance (BFSI) sector for some time. However, the Reserve Bank of India (RBI) issued guidelines in November 2020 permitting non-banking financial companies (NBFCs) and banks to loan money to the underserved segments of the economy by leveraging the lower cost of funds from […]