SME Finance Solutions

BANGALORE, INDIA: The prominence of SME sector in today’s world is amply recognised, considering their remarkable contributions in achieving various objectives such as employment generation, generation of new entrepreneurships, contribution to national outputs and exports, and the depth they provide to the industrial base of a country’s economy.

India’s SME sector is so vibrant today that they play a major role in sustaining the country’s economic growth. The General Finance Market of the country today identifies their major function as to fund the small and medium enterprises of the country. This section explores various options of business financing for all financial institutions. The relationship between the banker and the customer also has become most competitive today.

Also read: Government to set up task force to help SMEs

The World Bank has approved a $400 million additional financing loan to the Small Industries Development Bank of India (SIDBI) this year to improve the financial assistance to the small and medium enterprises of the country and to assist them in the  global financial crisis and the subsequent liquidity constraints. This also addresses the slowdown in the credit growth of the Indian financial sector.

This credit facility focuses long-term working capital loans for SMEs in the country and the expansion of credit facilities to new geographical areas, possibly to India's lesser-developed states, thereby promoting inclusive growth of SME’s across the country.

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