Arttimez, Octorber 2024: As India moves towards a $7 trillion economy by 2030, unhindered credit delivery to the micro, small and medium enterprises (MSME) sector is essential. To further enhance this business lending objective, TransUnion CIBIL organized a multi-city seminar in Chennai with the theme ‘MSME Conclave: Enabling Credit to Empower India’. The Grand MSME Summit organized by TransUnion Civil underlines the importance of MSME sector in generating employment, promoting regional development, reducing income gap and promoting innovation & entrepreneurship, contributing significantly to the country’s GDP growth. In addition, it aims to empower MSME lenders across the country with insights and deep understanding of information and analytics solutions to enable financing needs of MSMEs while ensuring MSME loan portfolio growth.
Private sector banks are the largest lenders to MSMEs in Tamil Nadu with a share of 51% of total credit as of the quarter ended June 2024. Most of the loans were given to the manufacturing sector with 37%, while gold loans accounted for 29% of the total MSME loans disbursed in the state. In addition, asset-based loans have increased the share of loans to the low-risk segment to 49% with a CIBIL MSME Rating (CMR) of 1-3. Chennai, Tirupur, Coimbatore and Madurai are the major cities where MSME lending is done. Accordingly, these four cities are seen as having the highest share of lending to MSMEs in private banks with Chennai 41%, Tirupur 62%, Coimbatore 69% and Madurai 57%.
