Credit Guarantee- A reality check
In the post- COVID scenario, MSME financing is almost identified with Credit Guarantee schemes. We look at its effectiveness and appetite among the consumers (MLIs). Credit guarantee was born with…
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MSME Funding Package of Govt of India – A Critical Analysis
MSMEs are offered a financing package to overcome pains from COVID19 lockdown. The package is not universal and likely to have limited impact on the segment. Govt of India recently…
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COVID 19: The key risk for MSMEs- Liquidity or Solvency?
Post lockdown there is confusion about MSMEs’ real challenge- Is it temporary liquidity mismatch or long term sustainability. Recently RBI announced a relief of moratorium (to pay EMIs) to businesses…
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Covid 19- Banks need to be more flexible to support the businesses
Evolving scenario due to Covid-19 endemic is creating a huge liquidity crunch for many businesses especially MSMEs. Banks should support by extending loan with very flexible terms. Post lockdown announced…
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Loan Restructuring support for MSMEs –Extension is positive
The extended restructuring window to assist the MSMEs in distress is a welcome step. However, its utility depends on how we draw the restructuring proposal. Finance Minister Mrs Nirmala Seetharaman…
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SMEs in Distress- Beware of ‘Soldiers of Fortune’
When in distress, many SMEs chase new money and normally end in traps of mischievous elements who make tall promises and swindle money. I recently met one entrepreneur after a…
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Bank merger: Re-entry to the pre-1969 era for small businesses?
There is an apprehension that merger among the PSBs may lead to deprivation of opportunities for small businesses and startups to obtain a bank loan. Govt has been pursuing the…
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A financial safety net for MSME workers: simplified
Govt has implemented few products that benefit the workers of MSMEs if implemented comprehensively. Recently I had an opportunity to survey the financial safety net implementation by the rural population…
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Non-classifying stressed MSME Loan as NPA- It is not enough
Non-classifying stressed MSME Loan as NPA- It is not enough Govt’s recent decision to direct banks not to classify stressed MSME loans as NPA is just a temporary relief and…
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Equitable Access to MUDRA Loans – a need of the hour
MUDRA loans can transform the lives of many micro-enterprises at the lower end of economic strata, however, the delivery process requires to be toned up. I have been tracking a…
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