CIBIL – SIDBI Report: MSME Lending Now Fueled by Digitization and Data Driven Decisions | BIIA.com | Business Information Industry Association

Micro, Small and Medium Enterprises (MSME) sector is the most vibrant and dynamic sector promising high growth potential for the Indian economy. Easy, quick and affordable access to finance for the MSMEs therefore becomes a priority towards strengthening this sector further. Digitisation and data driven decisions have significantly helped drive profitable lending and access to finance for the MSME sector and can further help in fuelling growth.

The latest TransUnion CIBIL- SIDBI MSME Pulse Report shows that commercial credit growth recovery continues at 13.5% YOY growth in the September 18 quarter. The report further states that the total on-balance sheet credit exposure in India stood at Rs 105.5 lakh crores as of September 18 of which MSME credit accounts for Rs 24.7 lakh crores, including credit to MSME entities and credit to individuals for business purposes.

Data analytics and digitisation have also helped drive access to credit for MSMEs as recent market-sizing analysis indicates that commercial credit information already accounts for a very material portion of all lending in the MSME space today. Insights from TransUnion CIBIL shows that over 6.5 million businesses have taken loans from the banking sector for business.

In addition, over 15 million businesses have taken formal credit from the banking system in personal capacity. Commercial credit growth recovery continues at 13.5% YOY growth in the Sep’18 quarter. The report further states that the total on-balance sheet credit exposure in India stood at Rs 105.5 lakh crores as of Sep’18 of which MSME credit accounts for Rs 24.7 lakh crores, including credit to MSME entities and credit to individuals for business purposes.