Developing a scalable model for (M)SME financing; IFMR Capital Finance Pvt Ltd.

Abstract

The internship was a wholesome experience with a few takeaways in terms of learning'. In a more generic nature it provided an opportunity to gain exposure to the Micro, small and medium enterprises (MSME) sector and its growing prominence in any economy, especially India. The value, on account of the company is threefold: • Next growth segment in MSME sector for the financial intermediaries and Micro finance institutions (MFIs) • A theoretical model to reduce repayment defaults taking into account the problem of information asymmetry • Growing prominence of Own Account Enterprises (OAE) in MSME sector The MSME sector in India does not have sufficient assets to pledge as collateral for their loan needs. The learning/insight gained, on account of the intern is: • Need for internal 'CONNECT' and useful external 'NETWORKING' • Enabling 'BUY-IN of your idea to the internal and external stakeholders