SME Artha 2022 | Video: Intent, eligibility, ability cardinal principles to assess MSMEs, says U GRO Capital’s Shachindra Nath | The Financial Express

SME Artha 2022 | Video: Intent, eligibility, ability cardinal principles to assess MSMEs, says U GRO Capital’s Shachindra Nath

Credit and finance for MSMEs: In an interaction with FE Aspire at the SME Artha 2022 event recently, he talked about the future of balance sheet-based lending to MSMEs, how to choose the right lender and more.

U GRO Capital's Shachindra Nath: Intent, eligibility, ability cardinal principles to assess MSMEs

Credit and finance for MSMEs: There is more in the process of underwriting loans to MSMEs than accessing the latter’s cash flows in the event of a collateral-free loan. For Shachindra Nath who is the Vice Chairman and Managing Director at NBFC lending to MSMEs U GRO Capital, the lender needs to look at three things to lend; first, his/her intent of giving money, second, how much money he can provide; and third, what growth the borrower will have with the money and whether he/she can pay back. 

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However, these three things are a function of MSMEs becoming formal in business in order to avail affordable credit, according to Nath. In an interaction with FE Aspire at the SME Artha 2022 event recently, he talked about the future of balance sheet-based lending to MSMEs, how to choose the right lender and more.

Also read: SME Artha 2022 | Video: With surety bonds, MSMEs won’t need collateral for bank credit, says expert

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First published on: 08-11-2022 at 10:00 IST