(MENAFN- ForPressRelease) Mumbai, India, 11th January 2025: In a landmark move to enhance credit availability for Micro and Small Enterprises (MSEs), the Ministry of Micro, Small, and Medium Enterprises (MSMEs) and the Small Industries Development Bank of India (SIDBI) set up the CGTMSEthe Credit Guarantee Fund Trust for Micro and Small Enterprises. This scheme facilitates institutional credit access for MSEs by offering guaranteed coverage to member lending institutions.

Along with the expansion of CredAbles digital lending capabilities, its NBFC armEquentia Financial Service Private Limited (a non-deposit-taking NBFC)has recently joined CGTMSE as a member lending institution.

This membership is a significant step forward in CredAbles journey to address the working capital gaps of the MSME sector in India.

Through the CGTMSE Udaan Guarantee Scheme, loans extended by CredAble's NBFC wing to micro and small businesses are now secured with a 75% guarantee cover for standard loans. This framework offers significant risk mitigation, protecting CredAble against potential defaults while expanding credit availability to underserved segments.

These benefits, combined with CGTMSE's guarantee mechanism, strengthen CredAble's ability to deepen its wallet share and extend short-term working capital loans to micro and small enterprises. A large portion of the loans extended under the CGTMSE scheme by CredAble will be part of the supply chain financing and working capital loans.

Currently, close to one-third of Equentia Financial Service's lending book is dedicated to micro and small enterprises. After qualifying as a member lending institution for the CGTMSE scheme, CredAble plans to grow this to 40-45% of its lending portfoliofurther increasing access to MSE credit.

Commenting on this milestone, Manu Prakash, Managing Director, Lending and Capital Markets of CredAble, said: "CredAbles working capital financing suite is a game-changer for businesses in India. We are excited to take things up several notches by becoming a member lending institution under SIDBI's CGTMSE scheme. Through this initiative, we plan to expand our outreach and contribute to the financial inclusion of micro and small business segments across India, which have been traditionally overlooked by conventional lenders. This marks a momentous milestone in our growth journey, and we look forward to growing our lending share and supporting the working capital needs of these critical economic drivers.

By facilitating timely access to working capital, CredAble empowers clients in industries such as manufacturing, e-commerce, logistics, and services to outpace their competitors.

In a commendable move to inject more capital into the MSME sector, the Union Budget 2025 has introduced a significant enhancement of credit availability with the credit guarantee cover for micro and small enterprises extended from INR 5 crore to INR 10 crore. One of the significant changes in the budget is the revised classification criteria for MSMEs. The budget has increased the turnover cap for micro-enterprises to INR 10 crore and small enterprises to INR 100 crore. This change allows more businesses to qualify, expanding CredAbles reach as a member lending institution under the CGTMSE scheme to better support micro and small enterprises.

Strong government backing coupled with innovative, tech-enabled offerings from FinTechs like CredAble is driving advancements in the digital lending space, promising to substantially increase MSMEs' access to working capital in the years to come.

With an expanding team of industry specialists and global delivery frameworks, the company is continuously innovating financial products to enhance agility, offering solutions that accelerate value and expedite clients' time-to-market trajectories.

As a member lending institution under the CGTMSE scheme, CredAble is also well-positioned to scale its supply chain offerings and bridge the working capital gap for micro and small sellers catering to larger corporations.

CredAble remains committed to broadening its lending horizons while empowering India's micro and small enterprises through sustainable and easily accessible financing solutions.


About CredAble:

Established in March 2017 by Nirav Choksi and Ram Kewalramani, CredAble is India's largest working capital technology platform enabling more than USD 8 billion annually in working capital for India Inc. which includes large, mid, and emerging corporates, MSMEs, and financial institutions. CredAbles platform hosts over 175+ corporate customers, over 3,50,000 small business borrowers, and over 100 global financial institutions and banks. By leveraging technology built in-house, expertise in big data analytics, trade finance, and partnerships with capital providers, CredAble leads the working capital space while witnessing over 500% year-on-year growth.

Backed by well-known investors such as Oaks Asset Management, Plutus Wealth Management LLP, and Axis Bank Limited, the company was granted an NBFC (BBB Stable) license by RBI in 2019 and offers post-invoice discounting and other working capital finance products. Apart from catering to the financial needs of the SME segment, the company offers financial services through its platform products to customers such as Large Corporates, Mid-Market and Emerging Corporates, and Financial Institutions.

CredAble was recently awarded the company of the year for best multi-cloud adoption along with best digital platform at the Bharat Fintech Summit 2024. Furthermore, it was recognised with Product Innovation of the Year at SME Finance Forum 2023. CredAble also won the fintech startup of the year 2022 at The Asset Triple A Digital Awards 2022 followed by The Best Banking Tech of the Year at the Asia Fintech Award 2022 for building a tech stack that is robust & agile which has transformed the working capital landscape in the country.

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