This article has been contributed by Shelly Kwatra, Assistant Vice President – Investments, BlackSoil In recent years, the prospect of MSME lending in India has undergone a fundamental shift. Once driven largely by relationships, branch-level familiarity, or collateral availability, it has evolved into a far more data-driven and disciplined ecosystem.During the pandemic and immediately afterwards, credit availability was supported by emergency government schemes and historically low interest rates. While credit continues to flow today, it is increasingly priced to reflect underlying risk with greater precision. From Relationships to Financial DisciplineBeing “bankable” is no longer determined by the size of an enterprise or the strength of its relationships. It is now defined by financial transparency and a disciplined operating model. Lenders like BlackSoil put greater emphasis on whether an MSME can sustain itself through its own cash flows, using debt as an accelerator for growth rather than as support for ongoing ineffectiveness. Businesses that rely on debt to bridge structural gaps are often the first to face higher pricing and, eventually, limited access to capital.Growth Still Matters, But Quality Matters MoreStable revenue growth is still important, but lenders now place greater weight on quality. Priority is given to businesses that showcase better… Read MoreStartupTalky- Business News, Insights and Stories
