NBFCs Step Up MSME Lending, Filling Credit Gap

Non-bank lenders, like NBFCs, are giving more loans to small and medium-sized businesses (MSMEs).

They're focusing on smaller loans (under '10 lakh) backed by property.

Banks often don't focus on these smaller loans.

NBFCs are seeing growth in 'micro-LAP' loans.

Many borrowers are from lower-income groups, and NBFCs are experienced in understanding their needs.

The MSME sector still needs a lot more credit.

NBFCs' lending to MSMEs is growing faster than banks'.

Government programs are helping NBFCs lend with confidence.

These loans are a high-yielding business for NBFCs.