Credit platform for MSMEs takes shape

• A countrywide pilot of the newly developed credit protocol infrastructure for the democratisation of credit will start within a fortnight.

The credit protocol infrastructure, known as Open Credit Enablement Network (OCEN):

• Mediate the interactions between loan service providers, usually fintechs and mainstream lenders, including all large banks and NBFCs.
• Private equity and venture capital players, angel investors, high net worth individuals and others will also could be part of this exercise as investors.
• Common language for lenders and credit seekers.
• Credit will become more accessible for a large number of entrepreneurs and small businesses in the country.

Contribution of MSME to Economy:

• 38 million MSMEs
• 45% of manufacturing output,
• Over 40% of exports,
• Over 28% of the GDP
• Employ 111 million people.

Reference: https://www.thehindu.com/business/credit-platform-for-msmes-takes-shape/article32175949.ece#:~:text=A%20countrywide%20pilot%20of%20the,)%2C%20that%20developed%20the%20platform.&text=To%20start%20with%2C%20iSPIRT%20will,the%20State%20Bank%20of%20India.

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