The business loan portfolio is an important vertical for lenders. The value and volume of individual loans are sizable compared to other segments, such as MSMEs and retail loans. In 2024, public sector banks indicated growth in their corporate loan portfolio in sectors such as energy and infrastructure. SBI’s year-on-year loan book, for instance, grew […]
Understanding Cluster-Based Lending Approaches for MSME Finance
The Government has designed policies and taken steps to encourage financial institutions to provide adequate and timely credit to MSME finance to facilitate their development. Reports suggest 27.4 million MSME loans were sanctioned during the financial year 2024, amounting to Rs 54.2 trillion, a growth of 19.3 per cent in volume and 5.4 per cent […]
5 Ways Lenders Can Validate a Company’s Eligibility for Business Loans
The volume of business loans in India witnessed a 16.3% year-on-year growth on March 24 against 12.5% in the same period on March 23. Further, the total credit extended to businesses was around ₹82.73 lakh crore on March 24 against ₹71.16 lakh crore in the previous year. These figures indicate a growing demand for business […]
Maximizing MSME Loan Portfolios: AI-Driven Risk Assessment Strategies
The Micro, Small, and Medium Enterprise (MSME) sector continues to be a promising yet underserved segment in the credit market. By March 2024, for instance, the MSME loan segment witnessed a 17.8 % growth compared to the same period the previous year. The total valuation of the loan portfolio increased to INR 64.1 trillion. Therefore, […]
The Future of Credit: Anchor-Based Finance Explained for Modern Lenders
Traditional lending practices are rapidly becoming obsolete as financial institutions seek more innovative credit solutions. This transformation is critical, given the IFC’s finding that 40% of formal MSMEs in developing countries face an annual financing gap of $5.2 trillion. Accenture recently shed light on this transformation – their latest survey found 90% of businesses showing […]