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Look Towards A New Future

Jan 26, 2012

Analysis of MSME Loan Market for NBFCs in India

The research service introduces the relevance of MSME Loans Market for NBFCs in India. Frost & Sullivan believes that with the emergence of newer business models to tap bottom of pyramid, NBFCs loan disbursals to MSMEs has grown at a rapid rate from FY 2009 to FY 2011. Further, drivers, restraints, and challenges are analyzed. Following that, estimates of current and forecasted market size and market share analysis is provided. Company profiles of the top NBFC companies and End user analysis is studied. The conclusions represents the SWOT analysis of the NBFC market and recommended strategies to ensure a profitable future.

Executive Summary

Importance of MSMEs
  • Micro, small and medium enterprises (MSMEs) are significant growth drivers of the Indian economy.
  • MSMEs provide employment to about xx crore persons across x.x crore units. MSMEs contribute to xx percent of the manufacturing output and to xx percent of exports*.
  • Despite this obvious importance of MSMEs to the Indian economy, government departments, SIDBI and the RBI have not been able to reach out to the majority of MSMEs. It is estimated that only about x percent of unregistered and 10 percent of registered MSMEs have access to finance from banks and financial institutions (organized sector).
  • One of the biggest challenges faced by the MSMEs in India is the inadequate and delayed access to quality credit.
  • Traditionally, primary lenders to MSME segments have been local moneylenders in the unorganized sector. Credit from unorganised sector is not only unreliable but also intermittent and expensive. MSME segment thus provides significant untapped market potential for NBFCs.

NBFCs in India - MSME Loan Market

Published: December 2011
No. of Pages: 47
               
Table of Contents
1. Executive Summary
Executive Summary
2. Market Overview
Market Overview
Introduction
External Challenges: Drivers and Restraints
Market Size and Forecasts
Market Share and Competitive Analysis
Company Profiles
End-user Analysis
3. Conclusions
The Last Word
Key Conclusions and Recommendations
4. About Frost & Sullivan
Frost & Sullivan's Value Proposition
About Frost & Sullivan