India msme finance market is projected to reach inr 46 trillion by base case scenario by fy’2020: ken research

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Bengaluru, March 10, 2016: KEN RESEARCH announced its latest publication on “INDIA MSME FINANCE MARKET OUTLOOK TO 2020 – DRIVEN BY GOVERNMENT’S FINANCIAL INCLUSION AGENDA AND NEWFOUND PROFITABILITY IN SEGMENT” which provides a comprehensive analysis of the MSME Finance Market in India. The report covers various aspects such as market size of MSME finance market, demand-supply gap in MSME Finance and market share of various financial institutions. The report also provides competitive landscape and profile of major players operating in India’s MSME Finance Market. The future analysis of overall MSME market has also been discussed in each of the sub segment under base case scenario, aggressive case scenario and conservative case scenario. The report is useful for various banking and non-banking financial institutions including new entrants operating in or planning to enter the market to align their market centric strategies according to ongoing and expected trends in the future.

With an elevation in number of entrepreneurs in the country and a rise in financial literacy, a higher number of companies have looked forward to obtain finance from banks and other financial institutions. The increase in application and approval of loans has also given rise to the total outstanding loans. The amount of finance that has been outstanding from MSMEs has witnessed an increase from INR ~ billion in the year FY’2010 to INR ~ billion in FY’2015. The increase in demand of credit has also heightened the competition amongst banks, NBFCs and MFIs who have developed unique schemes and solutions to assist customers in obtaining the best possible credit solutions. . The total demand for credit inclined at a CAGR of ~% during FY’2010-FY’2015. Micro Enterprises accounted for greater proportion of overall demand for credit in FY’2015. The MSME finance market of India has witnessed presence of Various Banks, NBFCS and MFIs, with State Bank of India and its associates capturing the maximum share of the overall finance provided to the Micro and Small enterprises

According to the Ken Research report, the India MSME Finance market will grow at a considerable CAGR rate thus reaching INR 46,426.0 billion by FY’2020 owing to increasing government efforts, rising profitability and increasing presence of a large number of Banks and NBFCs offering a variety of schemes.

“Rising government initiatives, increasing awareness among Entrepreneurs, augmenting financial infrastructure support to MSME and adoption of online mode of loan application are anticipated to give a boost to India MSME Finance market. Poor accountability of staffs in Banks and other institutions, collateral requirement and inadequate penetration of formal finance are few of the major challenges which will affect the growth of this industry in the future”, according to the Research Analyst, Ken Research.

Corporate Comm India (CCI Newswire)