Archive · 11 Jun 2025
TReDS Platform Usage Slow Despite RBI Mandate, Facing Challenges
TReDS is a system to help small businesses get loans quickly.
It hasn't been very popular with big companies and government organizations because it takes a long time to get invoices approved, and it's hard to get the money back if something goes wrong.
Also, not many businesses use it because it's hard to sign up.
The government is trying to make it easier by connecting it to other digital services.
This should help more businesses get loans and get paid faster.
TReDS platform usage by MSMEs increased to 2.66% of total outstanding in FY25.
PSU participation is slow due to invoice approval delays and asset recovery challenges.
RBI has mandated large corporates to register, but many remain inactive on the platform.
MSMEs face registration difficulties due to digital literacy and documentation issues.
Integrating TReDS with other digital platforms is seen as a potential solution to improve efficiency.
- Who
- MSMEs, Corporates, and Public Sector Units (PSUs)
- What
- Slow growth of TReDS platform.
- When
- FY22 - FY25
- Where
- India
- Why
- To assess the use of TReDS platform and the challenges it faces.
- TReDS % of MSME Outstanding (FY25)
- 2.66%
- TReDS % of MSME Outstanding (FY22)
- 0.58%
- Registered MSME sellers
- 135,093
- Registered buyers
- 7,937
- Active Corporates
- 2,500
- Banks and NBFCs financiers
- 218
Sources
Enduring growth of the MSME credit landscape
Indian SMEs optimistic amid strong domestic demand, better financing access: Assocham
NBFC Credit Growth Surges 20% in FY25, Outpacing Banks Despite Microfinance Strain
Gross loan portfolio of microfinance lenders de-grew 13.5% to ₹3.75 lakh cr: Industry body
Small business confidence slips marginally in Q1FY26 amid global trade uncertainty
