70% MSMEs, self-employed use loans to meet immediate financial needs: Study

70% MSMEs and Self-employed Use Loans to Meet Immediate Financial Needs: A study has revealed that 70% of MSMEs (Micro, Small, and Medium Enterprises) and self-employed individuals use loans primarily to meet immediate financial needs, such as paying salaries, covering operational costs, and managing working capital. The report highlights that despite the critical role MSMEs play in India’s economy, many struggle with cash flow management and often rely on loans to stay afloat. The study underscores the need for better access to affordable credit and financial literacy for MSMEs to help them become more resilient and sustainable in the long term. Many businesses are still facing challenges in accessing timely loans and credit facilities from traditional banking institutions.