Sareen also says the Budget 2019 recognises the role NBFCs played in providing credit to MSMEs

Mumbai-based fintech (Financial Technology) firm Loan4SME has hailed the Budget 2019, which its Co-founder & CEO Simmi Sareen, says acknowledges the significance of the MSMEs in the domestic economy as well as the challenges these players face in accessing credit.

“It is heartening to see the union budget recognise both the importance of MSMEs in the Indian economy and the challenges they face in accessing credit. The proposed platform for MSME payments is a step in the right direction to bridge the cash flow gap for businesses,” Sareen says. With an interest rate relief to SMEs and proposed participation of more lenders on the TreDs platform, she expects that access to credit will surely improve for MSMEs.

Sareen also says that the Budget recognises the role that NBFCs have played in providing credit to MSMEs. “Recent liquidity crunch that the NBFCs faced will ease out with the credit default guarantee being provided by the government, allowing them to increase their lending to MSMEs.”