Scope for Alternative Financing Options to Promote Financial Access to SMEs: Evidence from India

Purpose: The purpose for the present study is to identify the new financing options available to SMEs to promote the access of finance and the key challenges and opportunities lies with some of the alternative financing tools.

Deign/Methodology/Approach: Content analysis is used for the available literature to fine-tune and streamline various sources and identify possible research issues in the said area and discusses about the scope of various alternative financing options for SME financing along with traditional bank SME credits.

Findings: The Indian government policies like Make in India, Mudra bank, Start-Up India is helping banks in extending credit to SMEs but has found conventional and legacy banks to not be up to the task. Today, India's MSMEs and their business owners are finding new-age digital startups and alternate lending platforms to be the most effective institution to credit. With India's alternate lending platforms providing the financial capital needed to help India's MSMEs digitize and get ready for the future, they certainly hold the key to the country's bright economic future.