India’s more than 50-million strong SME sector, employs close to 40 percent of the country’s total workforce and contributes 45 percent of the total industrial output. While large banks and NBFCs have catered to SME loan requirements in the past, there is still a huge gap to be bridged between demand and supply. Akshay Sarma writes on how this can be addressed at the earliest so that India can continue on its remarkable growth journey.

The author believes that collaborating with fintech lenders is a sure way that banks and NBFCs can offer differentiated loan products to SMEs while also narrowing the credit gap in the market.