TransUnion CIBIL Hosts ‘MSME Conclave: Enabling Credit for Developing Bharat’ in Ahmedabad

TransUnion CIBIL Hosts MSME Conclave in Ahmedabad to Boost Credit Flow for ‘Developing Bharat’

BILKULONLINE

Ahmedabad, Sep 18: As India targets a $7 trillion GDP by 2030, ensuring a seamless flow of credit to small and medium enterprises (MSMEs) is critical. In pursuit of this goal, TransUnion CIBIL organized its multi-city ‘MSME Conclave: Enabling Credit for Developing Bharat’ in Ahmedabad.

The MSME sector, known for generating employment, driving regional development, bridging income gaps, and fostering innovation and entrepreneurship, plays a vital role in India’s economic growth. The conclave highlighted the importance of supporting MSMEs by ensuring easy access to finance. Financial institutions were provided with insights, analytical solutions, and a deeper understanding of credit portfolios to drive sustainable growth for MSMEs.

The conference featured keynote speeches by Ratnafin CEO Mr. Malv Desai and MAS Financial Services Director Mr. Sandeep Gandhi. Senior officials from banks and financial institutions also attended the event.

Private sector banks lead MSME lending in Gujarat

In Gujarat, private sector banks are leading MSME lending, contributing 36% of total loans in the June 2024 quarter. Most loans were directed toward the manufacturing sector (24%), with 26% of these being unsecured loans. Notably, low-risk loans (CIBIL MSME Rank 1-3) accounted for 53% of the portfolio.

Cities such as Ahmedabad, Surat, Vadodara, Rajkot, and Bhavnagar have received the majority of MSME loans in Gujarat. In Ahmedabad, Surat, and Bhavnagar, private banks contributed 40%, 45%, and 49% of MSME loans, respectively. In Vadodara (33%) and Rajkot (34%), public sector banks had a larger share in lending.

CIBIL MSME Rank and Commercial Credit Reports

CIBIL MSME Rank and Commercial Credit Reports play a crucial role in streamlining credit flow to MSMEs. These tools help financial institutions assess credit risk, expedite loan approvals, and manage portfolios effectively.

Commercial credit reports provide a detailed history of an MSME’s credit, including loan types, payment behavior, and financial obligations. This helps institutions evaluate credit risks accurately. The CIBIL MSME Rank ranges from 1 to 10, with 1 being the best, offering a comprehensive credit risk assessment based on an MSME’s financial history.

With a commitment to supporting MSME financing across India, TransUnion CIBIL plans to continue its MSME Conclave series nationwide.