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Credit platform for MSMEs takes shape

24th July, 2020 Economy

Credit platform for MSMEs takes shape

  • A countrywide pilot of the newly developed credit protocol infrastructure for the democratisation of credit will start within a fortnight.

The credit protocol infrastructure, known as Open Credit Enablement Network (OCEN):

  • Mediate the interactions between loan service providers, usually fintechs and mainstream lenders, including all large banks and NBFCs.
  • Private equity and venture capital players, angel investors, high net worth individuals and others will also could be part of this exercise as investors.
  • Common language for lenders and credit seekers.
  • Credit will become more accessible for a large number of entrepreneurs and small businesses in the country.

Contribution of MSME to Economy:

  • 38 million MSMEs
  • 45% of manufacturing output,
  • Over 40% of exports,
  • Over 28% of the GDP
  • Employ 111 million people.

Reference: https://www.thehindu.com/business/credit-platform-for-msmes-takes-shape/article32175949.ece#:~:text=A%20countrywide%20pilot%20of%20the,)%2C%20that%20developed%20the%20platform.&text=To%20start%20with%2C%20iSPIRT%20will,the%20State%20Bank%20of%20India.