A Vyapar Credit Card for MSMEs

Government data indicates that less than 40 per cent of MSMEs borrow from the formal financial system

The Standing Committee on Finance has prepared a multi-year road map to strengthen credit flows to the micro, small and medium enterprises or the MSME sector. Currently, more than 60 per cent of India’s 6 crore-plus MSMEs are not borrowing from the formal financial sector, leading to a credit gap of Rs 20-25 trillion. Moreover, MSMEs are borrowing at high rates and have access to only limited financial products. We need to roll out a Vyapar Credit Card (VCC) that can deliver cash-flow based lending to every MSME —from the footpath hawker to the saree weaver. Just like the Kisan