Strategy for Providing Adequate and Timely Credit to Micro & Small Enterprises (MSES) by Banks & Financial Institutions

Abstract

Micro & Small Enterprises (MSEs) are the backbone of Indian Economy and play a vital role in providing employment. But this sector faces many challenges for its growth and development. Out of which, adequate and timely access to finance has been the biggest challenge. This paper reflect an insight view on the various challenges face by MSEs, various finance and credit related issues of MSEs and various problems faced by the Banks and Financial Institutions(FIs) etc. Further, paper also explains the strategy to be followed by Banks or FIs to overcome these problems and how to provide timely and adequate finance to MSEs as and when required. It also elaborates the action plan to execute the proposed strategy and various roles to be taken by Government, Banks, FIs and Private Sector for providing finance to MSEs.