Credit and Finance for MSMEs: NBFC lender Vivriti Capital, which has around 180 NBFC clients lending to SMEs, has cumulatively disbursed Rs 20,000 crore through its online lending platform CredAvenue since its launch in 2017. Out of 180 NBFCs, the company claimed 80 small and 35 mid size NBFCs being disbursed Rs 3,800 crore and Rs 8,000 crore respectively, the company told Financial Express Online. Micro and SME loans have been growing at 19.2 per cent and 15.9 per cent respectively year on year with the total on-balance sheet commercial lending exposure in India stood at Rs 62.3 lakh crores with the micro and SME segments constituting Rs 14.8 lakh crores exposure — around 23.7 per cent of commercial credit outstanding, according to a report by credit information company TransUnion Cibil.
“We will continue to strengthen our credit and transaction engines, ramp up our user onboarding and product offerings in the next six months,” said Gaurav Kumar, Founder, Vivriti Capital. Currently, securitization and assignment transactions contribute over 65 per cent of the total volumes processed by the platform. The company has secured Rs 320 crore equity funding in FY19 from the US-based Creation Investments.
Important, credit growth in the MSME sector had contracted by 3.85 per cent, according to the RBI October bulletin. Shrinkage in the micro and small enterprises (MSE) was higher than that in the medium enterprises. For MSEs, the amount shrunk 4.4 per cent from Rs 3.75 lakh crores in March 2019 to Rs 3.58 lakh crores in August 2019. For medium businesses, it contracted by 1.8 per cent.
However, the monthly growth in credit to industry turned positive for September by Rs 9,700 crore out of which Rs 8,200 (85 per cent) is attributable to the MSME sector with a 6.2 per cent year-on-year growth though down from 9.5 per cent in September 2018, according to the SBI Ecowrap report. Total credit outstanding to MSMEs by public sector banks stood at Rs 8.81 lakh crore in FY19, according to the RBI data.