With the strong focus on promoting the MSME sector and supporting their functioning by timely capital infusion, easy access to credit, providing necessary advisory assistance and technology infrastructure, the MSME’s are slated for an unprecedented growth in the years to come.

SMEs are the engine of India's economy. They are a central part of the economic development model in the emerging economies like India, and they play a significant part in fuelling growth, innovation and prosperity. Despite all the positive development happening in this sector, there is still a huge demand supply gap and the sector is plagued by numerous challenges, such as:

• Availability of timely and affordable credit
• Inadequate capital infusion and delayed payments from large corporates and PSU’s leading to working capital gaps
• Restricted access to organized finance.

Traditionally banks have been the largest source of funds for the SMEs. Banks in India have had a conservative ecosystem, being risk averse and credit has primarily been extended against collateral.