Enhancing MSME Credit Access: Key Discussions at the FE Inclusive Finance Conclave 2025

At the FE Inclusive Finance Conclave 2025, Atesh Singh, Joint Secretary of the Ministry of Micro, Small, and Medium Enterprises (MSME), emphasized the critical need for enhancing access to affordable, swift, and timely credit for MSMEs. He highlighted that despite MSMEs being pivotal to India's economic growth, contributing significantly to manufacturing and exports, they continue to face substantial challenges in securing adequate financing. Singh called for collaborative efforts between the government, financial institutions, and fintech companies to bridge the existing credit gap and support the sector's expansion.

Strategic Initiatives to Strengthen MSME Financing

The conclave also underscored the importance of implementing strategic measures to bolster MSME financing. Recommendations included expanding existing credit guarantee schemes, promoting co-lending models between banks and non-banking financial companies (NBFCs), and leveraging digital lending platforms to streamline credit access. These initiatives aim to address systemic challenges such as stringent collateral requirements and limited credit histories that hinder MSMEs from obtaining necessary funds. By adopting these strategies, stakeholders aim to create a more inclusive financial ecosystem that empowers MSMEs to thrive and contribute more effectively to the national economy.