Financiers, intermediaries line up funds for MSMEs  

#GS3 #Economy  

  • At a time when micro, small and medium enterprises (MSMEs) are scouting for funds to keep their operations on, a host of financiers and intermediaries have come forward to meet the demand by capitalising on digital technology.  
  • Arvog, which offers debt, equity and funding, has announced digital micro loans amounting to ₹250 crore to MSMEs to help them come out of the crisis.  
  • The country’s 60 million MSMEs — businesses with annual revenue up to ₹250 crore — make enormous contribution to both India’s employment and its gross domestic product (GDP).  
  • The firm has tied up with FinancePeer and PayMe India to provide digital micro loans at an 18% rate of interest.  
  • The focus will be to look for companies having scalable ideas and a robust business model. Arvog would then step in and help them realise their growth plans with sustainability.  
  • Meanwhile, London-based CreditEnable, an AI-driven SME credit business, has ramped up its activities in India to help improve access to finance for SMEs during COVID-19.  
  • CreditEnable’s India marketplace currently caters to more than 20 leading lenders with ₹53,700 crore of loan books.  
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