Non-bank lenders 'LAP' up opportunity to tap MSMEs

Non-banking financial companies (NBFCs) in India are increasingly focusing on lending to Micro, Small, and Medium Enterprises (MSMEs), effectively stepping in to fill a crucial credit gap that has traditionally been left unaddressed by traditional banks. Leveraging their more flexible lending models and embracing digital tools and technologies, NBFCs are now able to offer tailored and often more accessible financial solutions to meet the diverse needs of small businesses across the country. This growing engagement of NBFCs with the MSME sector is playing a vital role in supporting the growth and development of these enterprises, which are a critical engine of the Indian economy.