This will be possible largely on the back of a reliance on informal sources of funding, the study by impact investing firm Omdiyar Network and consultancy firm BCG said
40% – of MSMEs will be receptive to digital lenders
2.5 times – India’s small and medium enterprises pay interest due to lack of access to formal source of finance
60 times – MSMEs have turnover of less than Rs 250 crore
15 times – digital lending to the MSME sector to grow in next five years
85% – of small enterprises could receive formal lending by 2023
60% – feel SMEs will get larger amount of payments through digital means in next 3 years
Easier and cheaper credit through digital lending has the potential to trigger a virtuous cycle for formalisation: up to 85% of MSMEs could be formal by 2023,” Saurabh Tripathi, BCG’s senior partner,