The report provides statistics on market size of MSME finance market, demand-supply gap in MSME Finance and market share of various banks, NBFCs and Micro Finance Institutions.

 

 

City, State, France., March 7, 2016 - (PressReleasePoint) -Financial technology companies have gain mileage over the last 5 years. Globally, the investment in online MSME finance market has grown by about 45% y-o-y and many billion dollars has been ploughed into startups in the online MSME finance market space in FY’2015 alone. With the influx of investment, finance and banking are being transformed by innovations such as peer-to-peer models, crowd funding, and contactless payments. At the global level, these changes have been driven not by established financial players, but by startups including now-huge players such as LendingClub, Kickstarter, and Funding Circle. The Indian market also comprises of players such as Faircent, iLend, Lendbox and Loanmeet.

 

In India, a new generation of startups is taking shape in the financial sector from payments to wealth management to peer-to-peer lending to crowdfunding. These startups want to revolutionize the entire financial system in India and improve the quality of financial services. Online MSME finance market startups are looking forward to changing the way traditional financial system works in the country and aims to offer better deals to the borrowers and lenders who congregate on their platform.

These online MSME finance service providers are increasingly gaining legitimacy even with regulators. The RBI is considering the role played by online MSME finance service providers in availing MMSE finance and framing policies to accommodate the peer-to-peer model such as Faircent in the existing financial system. After such a move by the RBI, it is expected that online MSME finance service providers will also gain trust from investors and borrowers.

 

Despite of having relatively higher interest rates of 16-21%, small scale borrowers have preferred to opt for online mode of MSME financing due to ease of use and fast processing of loans. Moreover, since the interest amount in the PTP model used in online finance is lower in comparison to local money lenders, more small business owners have resorted to the usage of online platforms. Additionally, it has been observed that in case of presence of strong credentials of borrowers, the costs can be lowered by more than 10 times.

 

The latest market research report titled “India MSME Finance Market Outlook to 2020 – Driven by Government’s Financial Inclusion Agenda and Newfound Profitability in Segment” by Ken Research provides a insightful analysis of the MSME Finance Market in India and covers various aspects such as market size of MSME finance market, demand-supply gap in MSME Finance and market share of various financial institutions. The report also provides competitive landscape and profile of major players operating in India’s MSME Finance Market. The future analysis of overall MSME market has also been discussed in each of the sub segment under base case scenario, aggressive case scenario and conservative case scenario. The report is useful for various banking and non-banking financial institutions including new entrants operating in or planning to enter the market to align their market centric strategies according to ongoing and expected trends in the future.

Key Topics Covered in the Report:

 

    MSME Finance Market Size by Outstanding Credit and New Loan Disbursed

 

    Market Segmentation by

        Size of Enterprise

        Source of Finance (Formal and Informal)

        Registered and Unregistered

        Manufacturing and Service Enterprises

        Formal and Informal Source

        Form of Finance

        Regional Credit Distribution

 

    Value Chain for MSME Finance Market from the perspective of

        Borrower

        Financial Institution

    Competition and Market Share

        Public sector Banks

        Private Sector Banks

        Micro Finance Institutions (MFIs)

    Trends and Development

    Growth Drivers and Challenges

    Snapshot of India Online MSE Finance Providers

    Working Models and Revenue Models of Financial Technology companies

        Faircent

        Capital Float

        SMECorner

        NTREES

        Mandii

    Future Outlook using scenario analysis, projecting the future growth considering

        Base Case Scenario

        Conservative Case Scenario

        Aggressive Case Scenario

    Macro Economic Parameters

    Analyst recommendations

 

Major Players Covered in the Report

Banks

 

    State Bank of India

    Punjab National Bank

    Bank of Baroda

    Canara Bank

    Bank of India

 

Non Bank Financial Institutions (NBFCs)

 

    Bajaj Finserv Ltd.

    Religare Finvest Limited

    Reliance Capital

    Intec Capital

 

Micro Financial Institutions (MFIs)

 

    Bandhan Financial Services

    SKS Microfinance

    Janalakshmi Financial Services

    Ujjivan Financial Services

    Equitas Microfinance pvt Ltd.

 

Financial Technology Companies (Fintechs)

 

    Faircent

    Capital Float

    LendingKart

    Indifi Technologies

    SMECorner

    NTREES

    Mandii

 

Related Reports:

India Online Loans Market Outlook to 2019 - Industry Transformation by the Advent Of Web Aggregators

India ATM Managed Services and Outsourcing Market Outlook to 2019 - Spurred By Expansion Of The ATM Network

Contact Us:

Ken Research

Ankur Gupta, Head Marketing & Communications

+91-9015378249

 

 

 

 

7 Mar 2016