The institutional debt financing to MSMEs in India that is overseen by the Reserve Bank of India includes Public Sector Banks, Private Sector Banks, Small Finance Banks, Foreign Banks, Co-operative Banks, and Regional Rural Banks.
Working Capital, Term Loans, Equipment Financing, LAP, LC / Bill Discounting, ECB, Structured & Stressed Assets Funding, are some of the products under this category.
However, there are many limitations of Institutional Debt Financing which MSMEs are facing today. They may fall in any of the below-mentioned categories when they approach the Institutional lenders:
