MSME Financing – Is It a Problem or an Excuse?
India talks about a ₹20+ lakh crore MSME credit gap.
But the real question is, is MSME financing truly a structural problem? Or have we been using “risk” as an excuse?
At Bharat Fintech Summit 2026, Ramgopal Subramani and Vaibhav Tambe (TransBnk) challenged conventional thinking around MSME lending.
- Key Takeaways for Banks, NBFCs & Fintech Leaders
Data Exists. Usage Doesn’t. GST, bank statements, bureau, cash-flow trails – underwriting inputs are richer than ever
Collateral is Not the Only Comfort: Cash-flow based lending models are proving more predictive than asset-backed assumptions
Automation = Speed: Real-time verification & API integrations are shrinking MSME loan TAT dramatically
Risk is Mispriced, Not Unmanageable: Analytics-led underwriting reduces blind spots
Embedded Finance is Unlocking Distribution: Credit delivered at the point of invoice, marketplace, or supply chain
OCEN & Account Aggregator rails are creating structured, consent-led lending ecosystems
Collaboration > Competition: Banks, NBFCs & fintechs must co-build rather than compete for the same borrower
The shift is clear:
MSME financing is not a demand problem.
It’s a design problem.
If you’re building in MSME lending, supply chain finance, embedded credit, or digital underwriting – the next decade belongs to intelligent, data-led lenders.
The question is no longer “Should we lend?”
It’s “How intelligently can we lend?”
