Digital Lending The Game-Changer For SME Financing
Indian SMEs and MSMEs are the backbone of the economy . Contributing to GDP, exports, and employment, they play an important role in the economy. Until the last few years, however, financial institutions underserved SMEs, which hampered their growth. The lack of ease in the transaction was one of the prime difficulties faced by SMEs until the last decade. But now the scenario has changed. For rural and urban SMEs, banking has become much easier and faster. The Indian government's great support for SMEs is helping to bridge the gap and create a whole new image for SMEs. The Indian government prefers electronic payments over hard cash. Several government-funded loan schemes operate only through online transactions.To upgrade cash transactions to online transactions, the government runs schemes like CGTMSE, MUDRA and Stand Up India. These credit cards transfer the loan amount directly to the beneficiary's bank account, which indirectly encourages online shopping. In 201...