UGro Capital brought together policymakers, regulators, bankers and fintech executives under a new “India by MSME” platform, calling for coordinated action to structurally address India’s persistent credit gap for micro, small and medium enterprises.
The non-banking lender said the initiative is designed as a continuing institutional forum to align policy intent, regulatory clarity, capital participation and technology-led underwriting frameworks, to deepen formal credit penetration in emerging markets.
Addressing the gathering, Mangal Prabhat Lodha, Maharashtra’s Minister of Skill, Employment, Entrepreneurship and Innovation, said structured and affordable credit access for MSMEs remains central to employment generation and entrepreneurship-led growth.
Ravi Ranjan, Managing Director of State Bank of India (SBI), said that while GST adoption, digital payments and bureau integration have strengthened MSME formalisation over the past decade, the next phase requires disciplined collaboration between banks, non-banking financial companies and fintech platforms to responsibly scale credit access.
Manoj Mittal, Chairman and Managing Director of Small Industries Development Bank of India (Sidbi) emphasised partnership-driven credit expansion anchored in strong data governance and prudent risk management frameworks.
As per the MSME Sampark Report, developed by UGro Capital in collaboration with Dun & Bradstreet, the structural nature of the credit challenge is. Some 86 per cent of surveyed MSMEs operate below Rs 20 crore turnover, with a growing preference for secured, longer-tenure term loans. Average ticket sizes are rising, accompanied by what the report describes as disciplined sanction growth.
At the same time, the study notes declining reliance on microfinance and gold loans, alongside accelerating UPI adoption and reduced cash dependence, signalling what it calls a structural shift towards formal and mainstream credit channels. Dr Arun Singh of Dun & Bradstreet said the findings reflect accelerating MSME formalisation and improving credit behaviour across sectors.
Shachindra Nath, Founder and Managing Director of UGro Capital, said MSMEs contribute nearly 31 per cent to India’s GDP and remain central to employment generation, yet the structural credit gap remains significant. “India by MSME has been conceived as a continuing institutional platform to align policymakers, regulators, banks, NBFCs, fintech platforms and capital providers so that credit flows structurally and responsibly to India’s entrepreneurs,” he said. He added that the next phase of India’s growth would be MSME-led, data-driven and partnership-powered.
UGro Capital said it operates more than 300 branches nationwide and serves over 1.85 lakh customers across its Emerging Market and Embedded Finance platforms. The company reported assets under management of approximately Rs 15,500 crore and said it uses an AI and machine learning-driven GRO Score (3.0), sector-focused underwriting architecture and partnership-led co-lending ecosystem to support disciplined credit expansion in underserved and semi-urban markets.
Discussions at the forum focused on strengthening co-lending frameworks, expanding market-linked financing, standardising digital underwriting practices and encouraging long-term capital participation, underscoring what participants described as the need for coordinated ecosystem alignment to sustainably bridge India’s MSME credit gap. |
