Business, Management and Accounting
4 years ago

Central bank role crucial in boosting credit access for Indian SMEs

RePEc: Research Papers in Economics
Credit Rating Framework for Financing of SMEs in India and role of central bank
Pankaj Gupta, Sandeepa Kaur

Paper Summary

Small and Medium Enterprises (SMEs) in India face challenges in getting loans due to lack of credit history. Banks are hesitant to lend money to SMEs because of the risk of default. A better credit rating system is needed for SMEs to access financing. The central bank can play a role in improving SME financing.

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