The Challenge: Limited Access to Credit for SMEs
Despite the government’s efforts to bolster the SME sector, the majority of small businesses in India still struggle with financing. Traditional lenders often require extensive documentation, collateral, and a robust credit history—criteria that many SMEs fail to meet. This mismatch in the demand and supply of capital is a significant obstacle to growth for countless small businesses, particularly those operating in unorganized sectors or new-age business models like e-commerce, travel, and online retail.